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  • Sold Some Calls Against EBay 0 comments
    Dec 31, 2013 10:40 PM | about stocks: EBAY

    Today, I sold 18 JAN 55 calls against most of my EBAY position in Account I for 1.09 and the same against all of my position in Account III for 1.05. EBAY closed up on light volume, today, to 54.87. Q4 earnings are expected to be reported around 22 JAN., and the markets are closed on 20 JAN in observance of MLK Day. I suppose I'm hoping there is enough uncertainty prior to earnings that EBAY stays below 55 on expiration so I keep my shares, but I'm okay with the shares being called away. I maintain a "naked" long position in Account IV to capture upside and some other naked shares in Account I. Updated info, below:

    Account I (apx .50 weight):

    NOV 7. Bought EBAY @ 53.14. Sold 53.5 NOV calls @ .56. 1% return from premium. (also have a small position with no calls)

    NOV 15. Shares not called away

    NOV 18. Sold 55 DEC calls @ .53. 1% return from premium. (also have small position with no calls)

    DEC 11. Added shares @ 51.36.

    DEC 21. Shares not called away.

    DEC 31. Sold 18 JAN 55 calls against most of the position for 1.09. 2.1% return on premium.

    Account II (apx .17 Weight):

    NOV 07. Bought EBAY @ 52.32. Sold DEC 52.5 Calls @ 1.72. 3.3% return from premium.

    DEC 21. Shares called away. Total return: 3.6%. Now 100% Cash.

    Account III (apx .17 Weight):

    NOV 08. Bought EBAY @ 52.87. Sold 55 DEC Calls @ .89. Return from the premium of 1.7%

    DEC 21. Shares not called away.

    DEC 31. Sold 18 JAN 55 calls against most of the position for 1.05. 2% return on premium.

    Account IV: (apx .17 Weight):

    NOV 21. Bought EBAY @ 52.79.

    Disclosure: I am long EBAY, .

    Stocks: EBAY
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