Thursday, 28 December 2017

Options Trade - Sold a Call in GIS

On Dec 26, I sold a call in GIS. 

Sold 1 GIS Call Apr 20 '18 $60 @ $2.43 ($11.20 commission + $0.01 SEC Fee)


Days Held (sell date to expiry): 115

Net Premium: $231.79

Annualized Return = ($231.79 / ($5,655.94 - $231.79)) * 365/115 = 13.6%
Note: $5,655.94 is the price I paid for 100 shares.

The most likely outcomes of this trade are:

1. GIS is trading above $60.00 at expiration. I will have to sell my shares.

2. GIS is trading below $60.00. I will get to keep my shares as well as the premium.

4 comments:

  1. I like the play especially after GIS' run up since earnings. That commission seems so high. $11 for just entry. What broker do you use because that seems exorbitantly high.

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    Replies
    1. Definitely trying to be opportunistic with the bounce! I hope that the call expires worthless. If not, I bought in at $56.56 and will be selling at $62.53 for a 10% gain over 11 months.

      I use BMO Investorline.

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