On Oct 3rd I bought 1000 shares of Jetblue (JBLU) at $19.69. I also sold 10 contract of the $20 Calls. The Call expired and I was assigned on the 1000 shares. I ended up making $310 on the stock sale and a $450 premium on the option sale. This option expired on 10/20/17. This Covered Call made me $760.
While this option was working it’s way toward expiration, on 10/11/17 I bought another 1000 shares at $20.74. I didn’t sell a Call on this 1000 shares because the stock was moving and I was hoping to get a capital gain on the stock. The stock started down, however, I was still assigned on my first 1000 shares but the these shares, with no Call attached, continued down. Today with the stock moving up I decided to get out of this position and free up the money. I just sold the 1000 shares at $20.75 making 1¢ on the stock. I’m happy because I’m out of the position without losing money. I was involved in JBLU for almost 2 months and made $760 on the Covered Call plus $10 on the stock sale today for a total of $770. I’m happy I’m out!
10/11/17 – Buy 1000 Shares JBLU @ $20.74
11/29/17 – Sell 1000 Shares JBLU @ $20.75
Profit +$10
I know my JBLU trades didn’t pan out the way I wanted but between the few trades my money invested brought me in about a 2% return in the 2 months. That’s 12% annually! I always try to find something positive out of a “not so great” situation lol.
Steve
The Options Coach