Tuesday, November 10, 2015

Option trade - Update

     I recently wrote about writing a covered call in QSR, which you can read about here. The strike price of this call option was $48.00.  While holding this position, the price of the stock went up and up, which means the option premium went up as well.
     I  decided to buy this option back and then sell a new call option with a $52.00 strike price with a Dec 18 expiration date. The price of the stock has fallen back down to just over $47 a share.  So I plan to hold this option until expiration.  If it is not assigned I will attempt to write another covered call. As I have to pay an assignment fee of $24.95, I look for collecting premiums of $0.46 per contract before commissions.

Disclosure: Long QSR

I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.

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