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AUGUR OF ARIZONA
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I have been an equities enthusiast for over two decades. I have read tens of thousands of pages on investing in the stock market and continue to read about investing on a regular basis. Daily, I watch the stock market and study individual companies. I am a former military officer. I am a... More
  • EBAY Positions Update And Quandry 0 comments
    Jan 20, 2014 10:33 PM | about stocks: EBAY

    So the 55 calls I sold for 18 JAN worked out beautifully. EBAY closed on 17 JAN at 53.20; I kept the shares, the premium, and I have an unrealized gain. On 17 JAN I struggled with choices I was considering with Q4 to be reported after the bell on 22 JAN:

    1. Liquidate, step to the sidelines, and protect profits. Con of this would be I would not enjoy potential upside from earnings.

    2. Hold and sell calls for additional "protection"/decrease my basis. Con of this would be my upside would be limited if earnings are well received.

    3. Hold and not sell calls to reap the reward of potential upside from earnings. Con of this would be taking the fall of potential downside from earnings.

    Well, here's where I sit now:

    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.

    JAN 18. Shares not called away.

    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.

    JAN 02. Sold 31 JAN 52 EBAY cash secured puts @1.19. 2.3% return on cash security.

    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.

    JAN 18. Shares not called away.

    Account IV: (apx .17 Weight):

    NOV 21. Bought EBAY @ 52.79.

    Disclosure: I am long EBAY, .

    Stocks: EBAY
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