A stock that I recently purchased and wrote a covered call in was the topic of a report by CBC. CBC, or Canadian Broadcasting Corporation, released a report about TD and their practices of their employees. This report in the news shows what effect a report or any news, besides supply and demand, can affect the price of a stock. Whether the things mentioned were true or not, caused TD stock to fall dramatically. This was the largest one day drop of TD since 2009.
My covered called with a $70.00 strike price expired worthless. For 10 days, my return on the covered call was 0.415%. This was weekly option.
I will continue to write covered calls if the premium is reasonable.
Disclosure: Long TD
DISCLAIMER
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.
Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.
No comments:
Post a Comment