Option Expiration Day

Today was the last day of trading for 2 of my 3 covered call positions. They both closed in-the-money so were nicely profitable trades.

They would have been much better if I had not tried to roll up, then down my options in EEE. That brainstorm cost me about 1/2 of my expected profit in the trade.

My original position in EEE would have returned 16% in 61 days if I had not messed it up. That is close to 96% annualized.

My position in CHINA returned 5.05% in 26 days. I like that kind of return for less than a month.

Since both positions will be called away, on Tuesday I will be researching new opportunities to put the cash to work.

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One Response to “Option Expiration Day”

  1. Charles Says:

    Why do you let them be called away? Can’t you do a diagonal rollout (possibly down) or even a straight calendar rollout and prevent their being called? That would allow you to gather more premium without commissions on the stock. Or did you conclude that the IV had evaporated?


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