Call Writing Update Sept. 5, 2014

Here’s an update that you can get once the new newsletter comes out.  Also if some of this update does not make sense to you, then you must attend the webinar that I will be giving in the very near future.  Watch for updates and information about it.

Danny’s update as of September 5, 2014

Date	Symbol	Shares	Price	Contracts	Option	Prem.	P&L	Exp.
9/2/14	CTRP	200	66.5	2	67.5 C	1.3	$260	9/12
9/3/14	FSLR	200	71.34	2	72 C	.78	$156	9/12
9/2/14	YY	200	87.75	2	89 C	1.25	$250	9/12
8/25/14	YELP	200	82.87	2	85 C	1.27	$254	9/5	Covered
9/2/14	VRTX	100	83.08	1	84 C	1.38	$138	9/12

YELP I covered the position because as I mention in the last update that the chart look like it could be setting up with a head and shoulders pattern. This is bearish.   I sold the stock at 83.19 netting .32 and bought back the calls for a .05 total gain equals 1.54 or $308.

Let’s take a look at the other positions that will be expiring next week.

CTRP last sale 68.70

67.5 calls last sale 2.25

Intrinsic value = 1.20 which means they are holding 1.05 premium.

 

FSLR last sale 71.47

72 calls last sale .96

Intrinsic value = 0 which means it’s all premium

 

YY last sale 91.42

89 calls last sale 3.55

Intrinsic value = 2.42 which means they are holding 1.13 premium.

 

VRTX last sale 95.04

94 calls last sale 2.25

Intrinsic value = 1.04 which means they are holding 1.21 premium.

 

Add up the entire premium and that’s how much more gains the account can see. I get $4.35 x 200 shares = $870. So I will make that without adding any new positions. If any of the stocks are above the strike price on the close of expiration Friday like CTRP is now, then I make the difference from where I bought the stock and the strike price of the call. Take the strike price minus stock price 67.5 – 66.5 = 1.00 additional gain.

I will be scanning through my weekly option watch list for new candidates. Stay tune and have a wonderful weekend.