Some of you might be interested in how a covered call position works out IRL - This is one I initiated earlier in the month (the older ones have too many entries to be replicated here)
So here's one way you can take $38K and make it $80K in 6 months. (position initiated July 8)
Best case: ~$65,000 profit (as yield @ 6% average per week)
Worst case: ~$38,000 profit (as yield @ 2% average per week)
if the stock goes up $1 by January 1 (to $10.59) add $10K unrealized gain to the pile. If it goes to $0.00 I could still make ~$27,000.00 net in yield. ($65K total profit less the loss of my $38K investment) and get my money back.
This is not rocket science. I think if more of the SA people spent less time arguing about who's OPINION is more right and more time looking at their "options" - they'd make more "MONY" as someone once said.
PS: If I can edit this after it is published I will update it every weekend.
|BBRY calls spread||10,000||shares @||$9.59||$38,360.00||Buy in @ 40% margin|
|12-Jul||$2,813.62||sell to open net of commissions and fees|
|12-Jul||-$378.37||buy to close net of commissions and fees|
|20-Jul||$4,013.60||sell to open net of commissions and fees|
|20-Jul||-$1,878.37||buy to close net of commissions and fees|
|26-Jul||$3,016.27||sell to open net of commissions and fees|
|2-Aug||$4,216.25||sell to open net of commissions and fees|
|2-Aug||-$4,011.32||buy to close net of commissions and fees|
|9-Aug||$4,413.60||sell to open net of commissions and fees|
|9-Aug||-$14,186.32||buy to close net of commissions and fees|
|17-Aug||$9,713.50||sell to open net of commissions and fees|
|total realized yield 2013||$7,732.46|
|net percent yield||20.1576%|
|net/net gain 2013||$9,052.79|
|cost of investment||$38,360.00|
|current share value at today's price||$39,680.00|
|net capital gain per share||$0.33|
|current share price||$9.92|
|net gain per share||$0.91|
|net stock price gain or loss||$1,320.00|
|net/net total value||$47,412.79|
Disclosure: I am long BBRY.