OPEX: August 2009 Options expiration

I had a nice and healthy August options expiration with 6 positions being called out on.

Some of the positions I was not so happy on getting called out but at this point I really don’t care as I am more happy that my strategy seems to be working.

So, this is my first Options expiration update on the blog and I will create a new category for this.
I plan to do a full review of the portfolio at every opex and think in terms of how to effectively manage the positions for next opex.

So here are some profit numbers we have coming out of Aug 09 options expiration

As of Aug opex, I will get called out on 6 positions,

$C : Citigroup
We have 250 shares in the portfolio and will get called out on 200 of them as the covered call we sold for $4 strike is in the money and we will be left with 50 shares in the account. A few thoughts that come to my mind here are to buy 50 more and continue with selling covered calls. I looked at $C chart for some technical levels and I think its prudent to wait for a slight pullback to buy 50 more shares. I will post some tech analysis on C and will put this on my watch list for next week.

Trade Alert: Buying $XLF and Selling $XLF Covered call $14 Aug expiration

I bot 100 shares of XLF on the dip:

Sold $XLF covered call 14 strike Aug expiration for 17 cents.

Collecting $11.39 in premium.

I should have waited for a while before selling this covered call as I got a good entry on $XLF and should have waited for a nice bounce.

Well, well, well… things like these appear to be mistakes in hindsight but then you never know.

$XLF rallied hard into OPEX and now I am not so happy I sold this call, I am getting called out on XLF for a profit so thats not the issue, but I should really have waited a little before selling this covered call