- Bought ARIA stock at $2.23 in November
- Sold the January $2.50 call for revenue
- Stock closed below $2.50 when January call expired
- Sold the March $2.50 call for revenue
- Stock closed above $2.50 on March expiration, thereby assigning shares
- Received a total profit of 10% from trade
Monday, March 22, 2010
Aria Pharma trade finished
There was a trade that ended on last Friday. There will be more detail on the trade but here are some bullet points:
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"Bought ARIA stock at $2.23 in November
ReplyDeleteSold the January $2.50 call for revenue
Stock closed below $2.50 when January call expired"
just to make sure i understand call selling, you lost money on the january expiration, but profited on the march one? OR did you just receive revenue on the january one, and capital gains on the march one?
Because the stock was below the $2.50 strike price when the January call expired on Jan 15, I was able to keep the revenue from selling the call while still keeping the stock. I believe the stock was at $2.38. So I was able to once again own the stock without restriction. This price was more than what I paid for the stock.
ReplyDeleteSo then I took more revenue from selling the March options. The stock closed above the strike price, so my shares were assigned.