Wednesday, October 19, 2011

Revisiting COP

The stock of my first trade with this account, COP, closed at $69.56 today, a week after I exited when my call option was assigned.  This is one of those situations I will need to get used to with the covered call strategy...if I had stayed long in the shares, I would be up around $500 and looking to collect the dividend on my shares.

As it is I am out of the stock, having taken a nice profit, and not subject to the volatility that might ensue from such a quick run up...

I think the point has to be that the previous transaction was a trade, making money the old fashioned way, buying low and selling higher.  At least, that is what I am going to tell myself with this new approach.

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