Option Expiration and Assignment – INTC and CSCO

On Friday, February 16, 2013, two of my outstanding options hit their expiration date, with one expiring with no action, and the other being assigned.

Intel Corporation (INTC) – Covered Call

Intel Corporation closed on Friday at $21.12, and with a strike price of $22.00, my option expired. As I detailed in my original post about this option, I wasn’t surprised when this option expired. As of right now, I will consider selling more covered calls on my INTC holdings, as well as possibly paring back my holdings to better reallocate my funds. This expiration net me $16.29 in profits.

Cisco Systems, Inc (CSCO) – Cash Secured Put

Cisco Systems closed on Friday at $20.99, one penny below my option’s strike price of $21.00. Given an assignment cost of $4.95, my net cost per share will be $20.65, giving me a yield on cost of 2.71%. CSCO is a stock that is well positioned to increase their dividend payouts, even in the face of any struggles, given their significant cash reserves.

In calculating my trading profits, I will only count the options that expire, either with assignment or being called away, or with option positions I close out early. Based on this, my net profits from options in 2013 are $16.29. I have updated my Investments page with this information.

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Comments

  1. Two great stocks to write options on. Glad to see you are doing well, I look forward to seeing more!

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