January options expiration

Because I trade so many long-term options which expire in January, January expiration is busy for me and requires much more space than a Twitter tweet.

The 17.50 calls I wrote on YHOO were assigned, closing out the long position in the stock. With the 50 cents of premium received, and the 1.29 capital gain on the stock, profit was +1.79. This does not include premiums received on other YHOO options written earlier that expired worthless.

The 17.50 calls I owned on JCI were exercised, creating a long position in the stock. These calls cost me 11.35, so my effective basis in the JCI long is 28.85. Note that I have already written February 32 calls on JCI. The shares will be retained for covered call writing until called away.

The 20 calls I owned on MSFT were exercised, creating a long position in the stock. These calls cost me 7.20, so my effective basis in the MSFT long is 27.20. I am bullish on MSFT, so will probably wait for it to head north a bit before writing new covered calls.

The 50 calls I owned on HNZ were exercised, closing the short position I held in the shares. I paid 5.68 for these calls, but realized a 5.00 gain in the short position since it was opened at 55 and closed at 50. The 68 cent loss does not include premium received from other option writes nor the dividends paid out on the short position in the shares.

Finally, the 35 called I owned on GIS were exercised, closing the existing short position in the shares. I paid 4.12 for these calls, but realized a 4.00 gain in the short position since it was opened at 39 and covered at 35. The 12 cent loss does not include the proceeds of earlier option writes on GIS, nor the dividends paid out on the short position.

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