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EBAY Update- Call Writing Option Strategies -Part 3

Jul. 22, 2013 10:10 AM ETEBAY
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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 :

https://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% ..

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.

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