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GGjr
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Let's trade trade trade, and then trade some more! Love the ladies on FOX business, and Fidelity loves me. I think that's enough. No book, No blog, No company - dammit. I'm such a failure.
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  • Silk Purse Update 0 comments
    Jul 21, 2013 3:17 PM | about stocks: BBRY

    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.

    JMO-YRMV

    PS: If I can edit this after it is published I will update it every weekend.

    UPDATED: 8/9/2013

     

     

           
    BBRY calls spread 10,000shares @$9.59$38,360.00Buy in @ 40% margin
           
    Call Premiums      
    12-Jul$2,813.62sell to open net of commissions and fees 
    12-Jul-$378.37buy to close net of commissions and fees 
    20-Jul$4,013.60sell to open net of commissions and fees 
    20-Jul-$1,878.37buy to close net of commissions and fees 
    26-Jul$3,016.27sell to open net of commissions and fees 
    2-Aug$4,216.25sell to open net of commissions and fees 
    2-Aug-$4,011.32buy to close net of commissions and fees 
    9-Aug$4,413.60sell to open net of commissions and fees 
    9-Aug-$14,186.32buy to close net of commissions and fees 
    17-Aug$9,713.50sell to open net of commissions and fees 
           
           
    total realized yield 2013$7,732.46     
           
    net percent yield20.1576%     
           
    net/net gain 2013$9,052.79     
           
    cost of investment$38,360.00     
           
    total yield$7,732.46     
           
    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.

    Themes: BBRY, options, Sow's Ear Stocks: BBRY
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