Today I decided to close out my $12 CSP position in GE for two reasons. Firstly, GE has made its way back above $12 for the first time since mid-June, secondly I unfortunately hold this CSP in my brokerage account which has an arcane method of commissions for executing calls. Instead of charging you a simple transaction fee if your call is in the money at expiration, you are also charged a $19.99 fee for call assigning. A bit ridiculous inmy opinion, but I digress. Just as a note, I would personally recommend Zecco or Interactive Brokers for those of you who want to start your own covered calls portfolio but only have between $10,000 and $100,000, as you will find transaction fees can eat a large chunk of your profits.
I will attempt to sell another CSP in GE after they release they're earnings on friday. Most likely with a $12 strike, unless the stock pops or drops in either direction. The current performance metrics are below:
I will attempt to sell another CSP in GE after they release they're earnings on friday. Most likely with a $12 strike, unless the stock pops or drops in either direction. The current performance metrics are below:
5/27/2009 -- Sold To Open 1 GE June $12 Put @ 0.32
6/1/2009 -- Bought To Close 1 GE June $12 Put @ 0.11
6/1/2009 -- Sold To Open 1 GE July $12 Put @ 0.4
7/15/2009 -- Bought To Close 1 GE July $12 Put @ 0.3574
7/15/2009 -- Bought To Close 1 GE July $12 Put @ 0.3574
The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Current Put Sale Profit: $25.26
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