January options expiration

My January 30 calls on GIS were exercised which closed out the short position in the shares. It was a break-even proposition.

My January 25 calls on ORCL were exercised so I am now long the shares. I paid 7.27 for the calls but my effective basis in the shares is 25.00. This is a losing position currently (if you don’t count premiums received on calls written) but I am happy to hold ORCL at these levels.

My January 35 calls on JWM were exercised which closed out the short position in the shares. Loss on the position was 28 cents which was the time premium in effect when the calls were purchased. (The intrinsic value of the calls and the profit on the short sale offset). This does not include premium received on call writes. Those profits have already been recorded.

The January 17.50 calls I wrote on GE were assigned so my long position was called away. Profit on the written calls was 0.85 and on the common was 0.56 for a total of 1.41.

Last but not least, I had written Jan 60 calls on WLT so the stock was called away. Profit on the calls was 1.58 and on the common was .43 for a total of 2.01.

To summarize what remains: I am holding long positions in MET, TEVA, ORCL and YHOO with the intent to write covered calls on these. I expect all four to move higher and will wait until they do so before selling calls.

I have a call calendar spread on MSFT, long January 2013 20-strike calls and short February 28 calls.

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