Trade recap: Dynegy

I had 3 stocks called away over the weekend, so I will recap the prices and profitability of each.

I bought Dynegy DYN on April 4 for $9.72 a share and sold the April $10 call for $.20. That option expired out of the money and on April 24 I sold the May $10 call for $.25. The stock was called away at the May option expiration.

The total return was 5.4% over 44 days after all commissions. This works out to about a 44% annualized return.

I initially placed this trade with a very short, 20 days, time to maturity to make a quick couple of percent if the stock was called away. The option premiums were less than I normally like, and commissions ate up quite a bit of the premium. However, the trade worked out fine and I made a nice return.


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