Retirement Income

Stocks and Options

August 27th, 2008 at 4:29 pm

GOL Linhas Aereas Inteligentes SA (ADR) (GOL) - Sold Sep08 Calls

On 8/20/08, I sold 2 GOL Sep08 Covered Calls for a net deposit of $50.50 in my taxable account.  My basis for GOL is now 24.57.

I used to say that I have not owned an airline stock since back in the 1970s.  I would like to still be able to say that.  GOL has been a disappointment for me.  Of course, it appears as if the price of oil has been the biggest reason for GOL’s price decline.

I see that GOL is suspending dividends for the rest of 2008.  However in the same article I see a reference to Brazilian corporate law that requires a company to distribute a minumum of 25% of the year’s net profits.  If necessary, GOL intends to distribute a supplemental dividend payment at year end to be in compliance with the law.

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August 17th, 2008 at 8:43 pm

Aug08 Options Results

Here are the results for the options that I still had outstanding when the markets closed on Friday, 8/15/08.  I had four Put assignments and 22 Calls across multiple accounts that expired allowing me to keep all of the option premium.  The 22 Calls are summarized by stock across accounts resulting in 16 stocks being represented in the following list.  I will begin to sell Calls on these stocks starting tomorrow.

Stock Symbol Option Symbol Call/Put Bought / Sold Strike
 Price
Number of
Contracts
Result
AUY AUYHC Call Sold 15.00 10 Expired
BA BATM Put Sold 65.00 2 Assigned
BAC BACHG Call Sold 35.00 2 Expired
BP BPHM Call Sold 65.00 2 Expired
CCJ CCJHH Call Sold 40.00 2 Expired
DIVX QDWHB Call Sold 10.00 2 Expired
DSX DSXHG Call Sold 35.00 2 Expired
FNM NJWTJ Put Sold 10.00 4 Assigned
FRE FRETB Put Sold 10.00 2 Assigned
FRE FREHB Call Sold 10.00 2 Expired
GGC GGCHA Call Sold 5.00 11 Expired
GM GMHC Call Sold 15.00 12 Expired
GOL GOLHC Call Sold 15.00 2 Expired
LEH LYHHE Call Sold 25.00 2 Expired
MO MOHM Call Sold 22.00 2 Expired
PDS PDSTX Put Sold 22.50 2 Assigned
S SHB Call Sold 10.00 3 Expired
TIE TIEHC Call Sold 15.00 2 Expired
VCLK QCSHW Call Sold 17.50 2 Expired
YHOO YHQHE Call Sold 25.00 4 Expired

 

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June 24th, 2008 at 7:46 pm

Sold various Covered Calls from Jul08 to Dec08

Yesterday and today I sold Covered Calls on the various stocks whose Covered Calls expired in Jun08.  I don’t think any of these require additional discussion as I have written about them in various previous posts.  Enter the stock symbol in the search feature to find them if you have an interest.

These transactions represent $1382.75 in cash flow in addition to those which I have already written about yesterday and today.  Here are they are with quantity, stock, expiration type, strike price, Call/Put and net deposit amount.

  • 4 YHOO Jul08 25 Calls - 109.00
  • 4 TBI Jul08 15 Calls - 89.00
  • 7 AUY Jul08 15 Calls - 365.75
  • 2 LEH Jul08 25 Calls - 312.50
  • 3 S Aug08 10 Calls - 19.75
  • 2 BAC Jul08 30 Calls - 84.50
  • 3 CKR Dec08 15 Calls - 139.75
  • 2 PM Aug08 55 Calls - 30.50
  • 2 IR Jul08 42.50 Calls - 50.50
  • 2 IMB Oct08 2.50 Calls - 20.50
  • 2 GOL Aug08 15 Calls - 60.50

After making the list I guess I should say that whenever possible I prefer to sell options which expire in the next month.  Sometimes that just doesn’t work for one reason or another, usually because I want to sell the call at a higher strike price and/or want to get a larger premium.  That explains why some of these expirations are further out.

Also, after todays action I see I may have some some with a strike price a little too close.  I’ve been feeling a little bearish lately and generally am expecting prices to stagnate for awhile.  I’ll just need to watch them and perhaps roll some of them out if I really don’t want to have the stock called away.  The notable excpetion here might be YHOO.  I think I might be okay if it gets called away at 25.  Although, something might be going on because YHOO was up .59 today.  As always, time will tell.

 

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