Wednesday, June 29, 2016

Open position -- NUE

Bought at market price, sold the call just ITM hoping that it would be exercised early. However, Brexit hit, and the price dropped too low to be exercised. On Brexit day, my $0.03 buyback limit order triggered, so I ended up writing a new call about a month out. And I got to keep the dividend.

Between the dividend and the two calls, still a profitable position even though the price is down over 3%. But there is a month to go before expiration.

Date Description AmountROIaROI
2016-06-22Buy NUE @ $49.58-$49.58

2016-06-22Sell NUE 7/1 2016 $49.50 Call @ $0.89$0.89

2016-06-27Buy NUE 7/1 2016 $49.50 Call @ $0.03-$0.03

2016-06-28Div NUE @ $0.38$0.38

2016-06-29Sell NUE 7/29 2016 $49.50 Call @ $0.85$0.85

2016-07-29If assigned at expiration$49.504.04%39.89%
2016-06-29Current Price @ $47.87$47.870.76%39.44%
 

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