The purpose of this blog is to track 20 common stocks for a full year. The idea is to beat the S & P 500 like a mutual fund without the very high churn rate. These stocks will be held in a portfolio until next December 31.

Saturday, February 18, 2012

Feb Option update

See the Feb option update sheet.
10 of our stocks were called because the price on 2/18 was higher than the strike price.
This reflects a lost opportunity of $139,100.03.
I made a mistake with KO.  I placed the strike price below the purchase price. This results in a net loss on the trade.
We now have $5,000,000 to reinvest into the market. I will keep $465,000 as cash profit.(sale profit + option profit.) We will look to reenter our positions if the market corrects and we get a good position into our original purchases.
I will also sell March Calls on the remaining 10 stocks.
Overall, with the exception of KO, I am happy with the results.  KO by the way just announced it's 50th year of dividend increases.

As a side note.  Option contracts are 100 shares.  Each of the stocks I traded would have had residual shares to sell at full price or keep.  I chose to show these as a sale at strike for simplicity.

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