Expiration Day

I have 2 calls expiring today: The $12.50 on SLW and the $10 on DYN.

I bought Silver Wheaton SLW at around $10.60 and consider it more of a longer term holding. I can sell the $12.50 calls and earn a couple of percent a month while waiting for it to go up. I believe this company has excellent longer term prospects. They will be releasing quarterly earnings next Thursday.

A week ago I thought my Dynegy DYN position would be called away. I purchased the stock a few weeks ago at $9.72 and sold the Apr $10 call. The stock moved nicely to above $10 but has fallen back the last few days to $9.65 right now. Option premium on the $10 call is about 3% per month after commissions, so I would like to sell a couple before the stock is called away. They have an earnings release on May 8. I am a little nervous about this stock due to the recent pullback, time will tell.

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2 Responses to “Expiration Day”

  1. The Trader Says:

    Tim, check out the premiums on AAPL calls. Since you just freed up some cash from yesterday’s expiration, AAPL might work for you. I wrote a post of my analysis this week, http://mytradersjournal.com/stock-options/2007/04/19/aapl-covered-calls/.
    I still have 100 shares that I’ll be writing a covered call on next week since I bought my April 90 call back 45 minutes before close yesterday.

  2. Tim Says:

    Thanks for the comment. I took a quick look at your blog and like what I see. I have added it to my blogroll. I will keep checking in to what you are writing about.


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