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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 :


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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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