BOUGHT WFT COVERED CALL

2016年5月11日

I'm looking at engaging a little bit of buying power here while I wait for volatility in the broader market to pick up without taking on a huge bunch of risk ... .

Bought 100 Shares WFT @ 5.78
Sold June 6 Put
Total Package: $518

I'll put in a GTC order to cover for $6.00, since that is what I would receive if called away at expiry, realizing an $82 profit/100 shares. If price is less than $6.00 at expiry, I'll keep the premium received for the short 6 ($60 or so) and will proceed to continue to sell calls against my stock in future expiries to further reduce my cost basis.

2016年6月7日

注释

Debating on whether to roll the short call out (just noticed the chart says "Short 6 Put"; it should say Short 6 Call) or just get called away at expiry (assuming it stays above 6 for the next 18 days). I'm really not overly fond of the company and would prefer to just take my $82 and move on ... .

2016年6月17日

交易手动结束

Covering this here with 7 days to go for a small profit, exiting the stock at 5.99 and the short call for a net profit of 32/contract. I could have held it to expiration to see if price expired above the short call, but didn't want to commit long-term to the trade if it was going to break down from here.