Bought back a CAR option...

C

Cabin1111

I bought back an option on CAR Budget/Avis today. I bought it back for about $210. (2-$1.05 each). Then did another covered call for the Aug 24 $220. I got about $2,940. for the option.

This is Cabin111...I have moved and became Cabin1111 because I had to drop Firefox and BS like that, (couldn't trade at Fidelity unless I dropped Firefox). Long story...Stuff in cyberspace.

A new person...
 
Sorry, I have no clue what you're trying to tell us... :)
Pls elaborate. What's so special, or the catch, here?

Are you saying you made a profit of $95 per contract, and then opened a similar new one?
But is Aug not a very long timeframe?
Can you calc (convert) your profit rate (%) into a monthly rate?
 
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Quanto said:
Sorry, I have no clue what you're trying to tell us... :)
Pls elaborate. What's so special, or the catch, here?

Are you saying you made a profit of $95 per contract, and then opened a similar new one?
But is Aug not a very long timeframe?
Can you calc (convert) your profit rate into a monthly rate?
More...

Thanks Baron...He allows me to post again.

So I bought CAR in the middle of the pandemic...About $37.something (200 shares). I've done one covered call (expired worthless) on it. This next one I optioned for the Jan 24 $210. CAR put out a "special dividend" of $10. this month.

So I was able to buy back the Jan 24 $200. for $1.05 (and did pick up the dividend $2,000.).

Then did the next covered call. I think the used car market will drop big time (cars are being taken back by the banks and credit unions).

Very boring covered call guy here...

This will go back on my journal thread next time...


PS Microsoft, Google, and Firefox are all trying to control every part of my computer...I still get Dell (garbage) popups!!
 
Cabin1111 said:
So I bought CAR in the middle of the pandemic...About $37.something (200 shares). I've done one covered call (expired worthless) on it. This next one I optioned for the Jan 24 $210. CAR put out a "special dividend" of $10. this month.
So I was able to buy back the Jan 24 $200. for $1.05 (and did pick up the dividend $2,000.).
Then did the next covered call.
More...
Hmm. so the stock rose from $37 to now $177.
Man, isn't it dangerous to risk that much profit when doing such a covered call against it?
I think I simply would just pocket the profit, and look for a new ticker.

PS Microsoft, Google, and Firefox are all trying to control every part of my computer...I still get Dell (garbage) popups!!
More...
Use Linux and have your freedom back...
Of course: don't use the websites of the above said first 2 companies.
Use alternatives like this good search engine and translator: https://yandex.com/
 
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Quanto said:
Hmm. so the stock rose from $37 to now $177.
Man, isn't it dangerous to risk that much profit when doing such a covered call against it?
I think I simply would just pocket the profit, and look for a new ticker.


Use Linux and have your freedom back...
More...

If I could write code, I wouldn't have issues!! I'm OLD SCHOOL...DOS!! And, I just had one basic computer class in college...Almost 50 years ago!

It's funny, there is so much profit in these 200 shares, it would bump me up into a higher tax bracket.

I'll just glean the large premium and allow the decay to do it's job...

Wash, rinse, repeat...
 
Cabin1111 said:
If I could write code, I wouldn't have issues!! I'm OLD SCHOOL...DOS!! And, I just had one basic computer class in college...Almost 50 years ago!
More...

I'm old school DOS as well, but you gotta' learn to adapt. You could solve your pop-up issues with some registry editing. Or there's always format c: /u :-)
 
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