Today was the last day of my RIM option. It expired worthless as RIM was trading today at below $15. If I were to sell RIM today, my total profit (option premium included) would be $9.45. If I hadn't sold the option, I would have lost about $80.
One of the downsides of selling covered calls, is that you're inclined to hold onto the stock until the option expires, even if it is going down. For a while RIM was trading around $13, so I was down over $100. If I didn't have the covered call against it, I would have been much more likely to sell as it started heading south.
I think on Monday I'll sell another covered call at $15.
Over the last month or so, I closed out my VVUS position and also sold my shares of COS as it hit my stop-loss. My portfolio is at about 20% cash right now. I'm torn between finding some long term stocks to own, or trying to find more opportunities like VVUS was.
My entire portfolio is up 6.76% since I started in October. That's about 16% annualized. Way better than a savings account.
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