| Date | Description | Amount | ROI | aROI | Profit |
| 2017-10-23 | Buy TGT @ $63.22 | -$63.22 | |||
| 2017-10-23 | Sell TGT 10/27 2017 $63.00 Call @ $0.72 | $0.72 | |||
| 2017-10-27 | If assigned at expiration | $63.00 | 0.80% | 58.20% | $0.50 |
| 2017-10-23 | Current value | $63.00 | 0.80% | 291.00% | $0.50 |
| 2017-10-23 | Buy and Hold | $63.23 | 0.02% | -- | $0.01 |
| 2017-10-23 | Option Premiums | $0.72 | |||
| 2017-10-23 | Dividends Received | $0.00 |
Monday, October 23, 2017
TGT -- New CC-List Position
TGT showed up on the CC-List workbook this morning. Next ex-dividend date is 11/14, for $0.62.
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Hi Randy,
ReplyDeleteQuick question for you if you have time to answer: When stocks like TGT move downward and make calls at your original strike price too cheap to sell, do you hold the position without selling new calls, or do you sell calls with a lower strike price and take the risk that you might assign your shares well below the purchase price? Thanks for any insights.
Typically, I set a "pivot price" to be the strike price of the first option I sell. Later on, such as after a price decline, I won't sell a call for less than the pivot price unless I get compensated for the difference. For example, if my pivot price is $100, I might sell the $95 strike price as long as it pays at least $5. At that point, I may change the pivot price to be $95. Ratcheting down, so to speak. In most cases, I'm pretty much just collecting dividends for a while. That makes more than my money market accounts. :)
ReplyDeleteThat makes sense. Thank you for the response.
ReplyDelete