October 6th, 2009 at 10:13 am
On Friday, 10/2/09, I BTC 8 GGC Nov09 2.50 Covered Calls for a net cost of $56.02 in an IRA account.
I closed these Calls so that I could sell the underlying stock. In August, GGC did a 25:1 reverse split. The stock has not been paying dividends Jun08. Although options appear to continue to be offered I would need to purchase additional shares to have a round lot to be able to sell new options and I just did not want to sink additional money into the stock. It is quite possible that the company will recover one day but I am not willing to wait for it.
Today I sold the 36 shares that I owned as a result of the reverse split at 29.05 for a net deposit of $1035.78. I took a considerable loss on this stock which I have not bothered to calculated because of the reverse split. I can now put the money to better use elsewhere.
June 4th, 2009 at 11:07 am
On 5/27/09, I sold 8 GGC Nov09 2.50 Covered Calls for a net deposit of $26.00 in an IRA account. My basis for these GGC shares is now 18.80, excluding dividends received.
I can’t believe I am so far behind in reporting my trades. Life sometimes intrudes in the best intentions. Oh well, I’ve finally got the time and energy to catch up again.
GGC has obviously been a disappointment as an investment. One of their segments is tied to the housing industry as a producer of vinyl doors and windows, pipes, deck, fence and rail products. If I remember correctly, they made an ill timed and expensive purchase which expanded their capacities just as the economy, and housing in particular, began its downward slide.
I continue to hold and sell Covered Calls on this stock as long as the calls are available. The premium return on the cash value of the stock is the way I justify continuing my strategy. It works out to about 45% annualized using the current net .03 per share premium and a stock price of .80 as I write this. At this point, I consider this a pure speculative play for me.
November 2nd, 2008 at 2:10 pm
I sold 8 GGC May09 5 Covered Calls on 10/21/08 for a net deposit of $106.00 in an IRA account. My basis on these GGC shares is now 18.83.
GGC suspended its dividend so I am no longer even being paid to wait while holding this stock. It’s only salvation now is the option premium which is nothing to brag about right now. I am actually afraid though that the housing market might come back in the spring which could send GGC’s price up again.
