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.
Two great stocks to write options on. Glad to see you are doing well, I look forward to seeing more!
Thanks for the encouragement BBBI!