| Price | Date | Description | Total | aXIRR | aROI |
|---|---|---|---|---|---|
| $30.50 | 2009-07-09 | Buy 2000 SO @ $30.50 | -$61,000.00 | -- | -- |
| $30.87 | 2009-07-09 | Sell 20 SO Jul 2009 $31 @ $0.40 | $770.05 | 121.1% | 79.1% |
| $30.57 | 2009-07-14 | Buyback 20 SO Jul 2009 $31 @ $0.15 | -$319.95 | 83.7% | 60.5% |
| $30.64 | 2009-07-14 | Sell 20 SO Aug 2009 $31 @ $0.65 | $1,270.05 | 31.6% | 27.2% |
| $32.29 | 2009-07-23 | Buyback 20 SO Aug 2009 $31 @ $1.45 | -$2,929.95 | 45.0% | 37.0% |
| $32.32 | 2009-07-23 | Sell 2000 SO @ $32.322 | $64,644.00 | 183.8% | 104.0% |
Days Held: 14
Stock Gain: $3,644.00 (6.0%)
Call Income: -$1,209.80 (-2.0%)
Total Gain: $2434.20 (4.0%)
Posts
Hi Randy,
ReplyDelete"Uncomfortable"?
How so? I'm assuming you think the market has been too bullish and that we might be in for a major reversal back in the bearish direction. Is that correct?
Unless you're expecting a major bearish move, wouldn't it still be desirable to do a deep ITM covered call with available cash in order to at least capture more return than is available from money market rates?
Also, I'm curious any thoughts you have on market timing because my sense was that market timing would not be something you would put much faith in.
Regards,
Jeff
Correct -- too bullish.
ReplyDeleteThe account I had it in was fully invested and I had no ability to do buybacks of other extended CC positions. This stock had just hit its highest price in 6 months, so I decided to unload it for the little profit it had. I have no reason to complain about a 4% gain in 14 days. All my positions should work so poorly. :)
I wish I had done the same with my NFLX position. It dropped significantly right after I rolled up the call.
You're right. I'm not much on market timing in general, but this runup has no underlying basis. It's WAY too strong for the economic conditions we're in. Even the increase in the minimum wage has me concerned. I've seen too many nearby small businesses close down in the past 6-9 months. That isn't going to help the ones that remain that are pinching pennies to survive.