Way back on 10/12/17 I bought 1000 shares of Arconic (ARNC) at $27.52 and sold a 10 contract $28 Call. This Call brought in a premium of 42¢ for $420. I really didn’t know too much about the stock but the day I bought the 1000 shares I seen a report that there was unusual activity with Call buying. I decided to take a shot with a Covered Call hoping to keep the premium and getting assigned and making 48¢ on the stock sale. It would have been a nice few day trade. It didn’t work out the way I wanted! I kept the $420 premium but as soon as I bought the stock it started going down. On 10/23/17 ARNC reported earnings and the stock tanked $3 to $24. I’m guessing a lot of people felt the company was going to report good earnings which caused the unusual Call buying. Well it took until today for the stock to return back up to where I bought in. I’m very happy because I didn’t have to take a loss on the stock. I just sold my 1000 shares for exactly what I bought in for, $27.52. So the result of my original Covered Call is, I keep the $420 premium, and 2 and a half months later I got out of the stock for what I bought for. It’s a 1.5% return in 2 and a half months. And this deal is over!
10/12/17 – Buy 1000 Share ARNC @ $27.52
12/28/17 – Sell 1000 Shares ARNC @ $27.52
Break Even
I still own a lot of stock. I would really like to get out of all position to start a new year fresh. However, I only have a few more days so I don’t think that will happen, but selling this 1000 shares today gets me a closer to that goal. Today I’ll be talking to my accountant. We will be talking about possibly dumping some more of my stock. I’ve had a great year so I might be looking to get rid of some more stock at a loss to help with my taxes. I’ll let you know what I do.
Steve
The Options Coach