- VIAC 6/19 $24 net $22.14
- MO 6/19 $41 net $40.05
- SJR 6/19 $17.50 net $17.18 (pays monthly dividend)
Author Archives: jefflsmith
Assigned on 226 of 336 SDC Jun 5 $7.50 Calls Position +44.7% in 44 Days
Recent run up in stock to $8.66. Details on the CC position established in April are below.
https://coveredcallswithjeff.wordpress.com/2020/06/04/assigned-on-sdc-22600-shares-cc-position-profit-80496-in-44-days-44-7-or-371-annualized/
May IB Account
- 12/12 Positions have cumulative net profit. Source of profit:
- 4 stock driving profit
- 4 short options driving profit
- 4 stock and options driving profit
Overall net profits would be higher with just owning the stock (driven by DXCM and EW). Removing DXCM and EW from the calculation we have $19,000 in profit ($9,004 from stocks, $10,000 from short options).
6 positions assigned. 3 positions expired. 1 Diagonal down.
Moved to the cottage in Canada on Thursday. Issues with internet and couldn’t get trades done to roll positions and avoid assignment/expiration. Managed to get Schwab trades done but ran out of time with IB :(. Love the cottage…..hate the service.
Managing DXCM CC Positions
DXCM has been on a wild ride since early March with a low of $182.07 and a high of $428.59. The increase has made it a significant percent of my account. Interesting challenge to manage. Protect on the downside after such a run up and leave some upside. Getting called away will trigger a capital gain that I would prefer to manage over time (make it long term).
In mid May I switched to a “ladder” of strike prices under the stock price to increase the protection. I was not able to protect all of the gain. The stock has dropped $90,775 in value. Options have increased in value by $59,625 for a net loss of $31,510. The position has a profit of $90,305 in 44 days.
The current position is below. 4.8% protection and 2.8% upside. Options are all Jun 19 expiry (monthly only).
Not sure if I have done the right management. If I had known the stock would go on such a run I wouldn’t have sold the calls to start with! Hope this might help someone manage a similar position. Comments/suggestions are welcome.
