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Showing posts with label Strike Price. Show all posts
Showing posts with label Strike Price. Show all posts

Saturday, January 19, 2013

Newsletter Information

Here are some more details into what Sell The Call Newsletter represents:

Stock - This is the stock symbol of the company that is in the newsletter.

Exp Date - This is the expiration date of the option

Strike Price - This is the strike price of the option

Stock Price - This is the current price of the stock

Bid Price - This is the bid price that is being offered for the option at the time of the newsletter

Assgn % Return - This is the total return that will be received if the stock surpasses the strike price when the option expires. For example, if a stock is purchased at $10.00, and a $11.00 strike price call is sold for $1.00, the assignment percentage return will be 20 %. That is derived from the amount received from selling the call ($1.00) and the stock appreciation ($1.00) all divided by the amount paid for the stock purchase ($10.00).

Static % Return - This the return received if the call is sold and the stock is purchased at the prices that are published in the newsletter. For example, if a stock is priced at $10.00 when bought, and a $12.00 call option sold for $1.00, the static return will be 10.00%.