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Fear & Greed Trader
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Independent Financial Advisor / Professional Investor- with over 25 years of navigating the Stock market's "fear and greed" cycles that challenge the average investor. Investment strategies that combine Theory, Practice and Experience to produce Portfolios focused on achieving positive... More
My company:
RTR LLC
My blog:
Stocks4Income.com
  • EBAY Update- Call Writing Option Strategies -Part 3 0 comments
    Jul 22, 2013 10:10 AM | about stocks: EBAY

    The July series of options expired at the market close this past Friday 7/19. The EBAY options that we sold on 6/5 , expired without the stock being called away.. EBAY closed Friday @ 52.25

    I purchased EBAY @ 52.15 sold the July 52.50 option for 2.16 . The complete commentary can be viewed here :

    http://seekingalpha.com/instablog/706857-fear-greedtrader/2011792-option-income-strategies-for-a-range-bound-market

    As of today I captured the 4.1% call premium received for a 6 week holding period, and we effectively now own the stock @ 49.99.

    I now have to consider whether i wish to sell the stock today , write another call option , or just sit & do nothing.

    Since this portion of my portfolio is set aside to produce income and I am currently comfortable with my present Cash position, I will opt to sell another call .

    I just sold the Sept 52.50 call for 1.90 , The table listed below shows the new addition and the two other positions I presently own.

    This new sale effectively brings my cost basis for EBAY down to $48.09.

    If the shares are called away in Sept , the yield will be 8.8% for a little over 4 months. The anuualized return would be over 25% ..

    (click to enlarge)

    Disclosure: I am long EBAY, LAZ, LVS.

    Additional disclosure: Stocks for Income means just that at Stocks4income.comDon’t be an average investor E-mail us @stocks4income@usacom Let us enhance your portfolio income.

    Stocks: EBAY
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