Logging into my Scottrade account today, I see that my COP option has been assigned well before the ex-dividend date for the shares. The market has been rising lately, and it took these shares with it, obviously.
So here's a quick recap on how that covered call trade worked out for me:
Cost (net) of 100 shares of COP: $6,315.91
Oct 65 call on COP premium (net): $87.74
Price (net) on assigned shares: $6,482.87
So I netted $254.70 off of the first trade with this strategy, which is close to the top of the range I had estimated, which was between $140-260. That's 4% on the trade. My money was locked in the stock for about 10 days.
The only downside, I didn't hold the stock through the ex-dividend date, so there's no residual revenue to be made off of this one. But I didn't expect that to be the case; it's why I didn't include it in the estimate.
Looking for the next one. Baby steps. Comments welcome.
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