The current trade with ZAGG ended with the March $10.00 call expiring worthless. Sell The Call still owns the stock. The stock has fallen close to the stop loss (i.e. Code Red) zone.
Right now, the April and May options do not provide enough revenue at the price the stock is currently at to cover the trade costs if the trade goes Code Red. So Sell The Call will simply be holding the stock at this point until either the stock rises providing Sell The Call with the opportunity to sell the April or May call or the stock falls to the stop loss and Sell The Call sells the stock.
- Don't forget to Like our Sell The Call Facebook Page and follow our Sell The Call Twitter page!
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Showing posts with label options expiration. Show all posts
Showing posts with label options expiration. Show all posts
Monday, March 21, 2011
Thursday, March 17, 2011
Expiration tomorrow
The ZAGG trade ends tomorrow. At least the March 2011 $10.00 call will expire worthless tomorrow. Sell The Call will then have the shares outright.
Sell The Call will simply hold onto the shares instead of immediately selling the April or May $10.00 call. This is because the shares are not far from the stop loss price that Sell The Call has set for the shares. The cost in commissions in selling the April call would create a greater loss if the shares were to fall to the stop loss price.
If the shares fall to the stop loss, Sell The Call will simply incur a commissions for the shares. If the shares rise in price, so should the call. Sell The Call will then act and sell the appropriate call creating a covered call trade.
- Don't forget to Like our Sell The Call Facebook Page and follow our Sell The Call Twitter page!
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Sell The Call will simply hold onto the shares instead of immediately selling the April or May $10.00 call. This is because the shares are not far from the stop loss price that Sell The Call has set for the shares. The cost in commissions in selling the April call would create a greater loss if the shares were to fall to the stop loss price.
If the shares fall to the stop loss, Sell The Call will simply incur a commissions for the shares. If the shares rise in price, so should the call. Sell The Call will then act and sell the appropriate call creating a covered call trade.
- Don't forget to Like our Sell The Call Facebook Page and follow our Sell The Call Twitter page!
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Sunday, December 12, 2010
Down week for Current LLEN trade....
The current LLEN trade is currently Yellow. The stock closed lower to $10.77. The Jan 2011 $12.50 ask fell all the way to $0.45.
Headlines from Yahoo Finance!
- The company released earnings of $0.35 per share, which is a 21% increase year over year.
- Mad Money says to stay away from stock.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Headlines from Yahoo Finance!
- The company released earnings of $0.35 per share, which is a 21% increase year over year.
- Mad Money says to stay away from stock.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Monday, December 6, 2010
New Strategy used for this trade
The account used a strategy for the first time on this recent close of one trade and open of another trade on the same stock.
When tracking the trade last Friday, the account noticed that the Dec $10 call on LLEN had only $0.05 of time value left. The stock at the time was priced at $12.45. When the account noticed that, it researched and found that the Jan 2011 $12.50 call was bid at $1.15.
The account acted in the following manner:
1) The account closed out the Dec $10 call by buying it back.
2) The account sold the Jan 2011 $12.50 call for $1.15.
It moved the cost basis for the trade to $ 11.04 per share. This is calculated by taking $9.79 original purchase plus $2.65 for the Dec call buy back minus $1.40 for the call premium received ($0.40 for the dec call and $1.00 for the January call).
This strategy was implemented because the account saw the high value of the Jan 2011 $12.50 call. It wanted to capitalize on it. It saw that there was a small fraction of time value left on the ask of the Dec $10 call. The account had the cash reserves to close the Dec trade. So the account acted and is now in a good position to continue moving the account value higher using the call selling strategies.
When tracking the trade last Friday, the account noticed that the Dec $10 call on LLEN had only $0.05 of time value left. The stock at the time was priced at $12.45. When the account noticed that, it researched and found that the Jan 2011 $12.50 call was bid at $1.15.
The account acted in the following manner:
1) The account closed out the Dec $10 call by buying it back.
2) The account sold the Jan 2011 $12.50 call for $1.15.
It moved the cost basis for the trade to $ 11.04 per share. This is calculated by taking $9.79 original purchase plus $2.65 for the Dec call buy back minus $1.40 for the call premium received ($0.40 for the dec call and $1.00 for the January call).
This strategy was implemented because the account saw the high value of the Jan 2011 $12.50 call. It wanted to capitalize on it. It saw that there was a small fraction of time value left on the ask of the Dec $10 call. The account had the cash reserves to close the Dec trade. So the account acted and is now in a good position to continue moving the account value higher using the call selling strategies.
Sunday, December 5, 2010
LLEN trade ended...in GREEN
The account ended the LLEN trade with a profit of 2% in two weeks time. The account found another trade to increase its value which will be in the next post.
The account continues to be able to increase its ability to be able to capitalize on money making opportunities with the call selling area. This is the first time the account was able to buy back an option before expiration in order to go on to another trade.
The account continues to be able to increase its ability to be able to capitalize on money making opportunities with the call selling area. This is the first time the account was able to buy back an option before expiration in order to go on to another trade.
Thursday, December 2, 2010
LLEN 12 trading days left......Code Green!!!
The stock burst past $11.00 on 3X Volume to close at $11.48! That puts the stock well past the $10.00 strike price.
The call ask time value is currently at $0.27 and is continually getting smaller......awesome.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
The call ask time value is currently at $0.27 and is continually getting smaller......awesome.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Tuesday, November 30, 2010
LLEN In The Money......Green
LLEN finished the day at $10.57.
The Dec $10 call bid finished at $0.90. The time value for this option's ask fell from $0.70 t0 $0.47, which is below yesterday's bid time value.
There are 13 trading days left.
The Dec $10 call bid finished at $0.90. The time value for this option's ask fell from $0.70 t0 $0.47, which is below yesterday's bid time value.
There are 13 trading days left.
Monday, November 29, 2010
LLEN trade 3 weeks left...yellow status
There are three weeks left in the L & L Energy trade. The stock closed the week at $9.97. The $10 Dec call option bid closed at $0.60.
The account expects the time value for the call to fall fast this week and next.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
The account expects the time value for the call to fall fast this week and next.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Monday, November 22, 2010
New LLEN trade!!
Today the account purchased shares of L and L Energy at a price of $9.69. The account sold the December $10.00 call for $0.55.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Saturday, November 20, 2010
EDMC trade done....6% profit in 5 weeks
The Education Management Corporation trade is over. The stock ended above the $10.00 strike price. So the shares were sold. The trade ended with a 6% profit over 5 weeks time.
The account is now looking for its next trade for either December or January.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
The account is now looking for its next trade for either December or January.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Tuesday, November 16, 2010
Codes for call selling action
Sell The Call account will be giving out color codes for where the trade is located. The colors are as follows:
Red - The stock has fallen to the stop. Sell The Call will close the trade for a loss and move on to the next trade.
Orange- This means that the trade has not produced a profit. The stock is in between the stop and the strike price but has yet to produce a profit. Also, the call time value might not have fallen enough to give the trade a profit. It could also be a combination of the two. This is an area where the account will be looking to either sell another call on the stock at expiration or close the trade for a loss and move on to the next trade.
Green - The trade is now profitable. This means that the call time value has shrunk enough to make the trade profitable, the stock has risen high enough to make the trade profitable, or a combination of the two have made the trade profitable. The account will have the ability to close the trade for a profit before expiration if desired and move on to the next trade.
Red - The stock has fallen to the stop. Sell The Call will close the trade for a loss and move on to the next trade.
Orange- This means that the trade has not produced a profit. The stock is in between the stop and the strike price but has yet to produce a profit. Also, the call time value might not have fallen enough to give the trade a profit. It could also be a combination of the two. This is an area where the account will be looking to either sell another call on the stock at expiration or close the trade for a loss and move on to the next trade.
Green - The trade is now profitable. This means that the call time value has shrunk enough to make the trade profitable, the stock has risen high enough to make the trade profitable, or a combination of the two have made the trade profitable. The account will have the ability to close the trade for a profit before expiration if desired and move on to the next trade.
3 days to end of EDMC trade
Today was a decent move down. But the stock is still $4.00 over the strike price. So the account feels pretty confident about a share assignment and will be looking for a new trade.
Any ideas for stocks in the $7.00 - $12.00 range?
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Any ideas for stocks in the $7.00 - $12.00 range?
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Monday, November 15, 2010
MBI
MBIA Insurance is the leading candidate for a December call selling opportunity. The Dec 11 call is being bid at $0.70.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Friday, November 12, 2010
1 week left in EDMC trade
There is one week left in the EDMC trade. The stock would have to drop $5.00 or 33% in order to get back to the strike price
The stock is at $14.64. It is $4.64 above the strike price. It will probably stay above the strike price.
The call's bid time value is sub zero. The ask time value is at $0.07.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
The stock is at $14.64. It is $4.64 above the strike price. It will probably stay above the strike price.
The call's bid time value is sub zero. The ask time value is at $0.07.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Saturday, November 6, 2010
2 Weeks in EDMC trade
There are two weeks left in the Education Management Corp. trade. They released their previous quarter's earnings.
The stock has moved up to $13.37. The stock will now have to lose $3.37 in the next 10 trading days in order to get down to the strike price.
The November 10 call time value is gone as far as the bid is concerned. There is still $0.40 time value left in the ask.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
The stock has moved up to $13.37. The stock will now have to lose $3.37 in the next 10 trading days in order to get down to the strike price.
The November 10 call time value is gone as far as the bid is concerned. There is still $0.40 time value left in the ask.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Thursday, November 4, 2010
EDMC up while industry down
Hey
EDMC had a 10+% day today after earnings were released while the rest of the industry got hammered. This was clear with the investigation into Apollo Group. Management abilities might also be the cause for the difference.
The stock also flew past the $12.50 call strike price. That should create some support at the $12.50 level as there are call holders wanting that profit.
The trade is going well. Eleven trading days left!
EDMC had a 10+% day today after earnings were released while the rest of the industry got hammered. This was clear with the investigation into Apollo Group. Management abilities might also be the cause for the difference.
The stock also flew past the $12.50 call strike price. That should create some support at the $12.50 level as there are call holders wanting that profit.
The trade is going well. Eleven trading days left!
Earnings release on EDMC
Hey
Education Management Corporation released their quarterly earnings. They earned $0.25/share which was three cents higher than the consensus. Details are below.
The stock has gone up to the $12.75 range.
The call bid value is in the $2.80 range. The time value for the call is almost gone.
Earnings release
Education Management Corporation released their quarterly earnings. They earned $0.25/share which was three cents higher than the consensus. Details are below.
The stock has gone up to the $12.75 range.
The call bid value is in the $2.80 range. The time value for the call is almost gone.
Earnings release
Sunday, October 31, 2010
EDMC trade 3 weeks left
The trade with Education Management Corporation is going well. The call bid time value has fallen over 50% since the call was sold. The company will be announcing their earnings this week. This should create some volatility in the stock. The account noticed that the November $12.50 call has a value of $1.00. This is a bullish sign as the contract will end in three weeks and this strike price is still out of the money.
The stock closed at $12.00. The stock will have to fall 16% from this price to get below the strike price of $10.00.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Saturday, October 23, 2010
EDMC Trade
Last Monday, the account purchased shares of Education Management Corporation and sold $10.00 calls against those shares.
EDMC shares were purchased for $9.96. The stock closed Friday's trading at $11.02.
The account sold the November 10 call. The time value of the bid on the call has shrunk from $0.90 to $0.50.
EDMC shares were purchased for $9.96. The stock closed Friday's trading at $11.02.
The account sold the November 10 call. The time value of the bid on the call has shrunk from $0.90 to $0.50.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Wednesday, October 20, 2010
Call Time Value vanishing
The time value of the EDMC $10.00 call bid that the account sold is now down to $0.74. That is almost a 20% drop in three days of trading. Only 22 trading days remain!
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