Monday, May 11, 2015

BBL Covered Call


Today I sold a covered BBL call. The summary of the trade is copied and pasted below.


BBL Covered Call

Action: Sell to open
Description: BBL SEP 18 2015 55.00 CALL
Quantity*: -1 contracts
Execution time: 05-11-2015 10:19 ET
Price: $0.98
Total Commissions & Charges: $7.70
Total Transaction Amount: $90.30
Trade Settlement Date: 05-12-2015 

I should receive a September BBL dividend for about $205 (assuming I still own all of my shares). With the share price hovering around $48, I think this is a pretty solid short term options trade. If I retain the shares, this is a nice way to add 44% to my BBL dividend income in September.


Here are some other covered calls that are still open.

GM Covered Call

Action: Sell to open
Description: GM JAN 15 2016 40.00 CALL
Quantity*: -1 contracts
Execution time: 04-27-2015 15:07 ET
Price: $0.98
Total Commissions & Charges: $7.70
Total Transaction Amount: $90.30
Trade Settlement Date: 04-28-2015 


BP Covered Call

Action: Sell to open
Description: BP JAN 15 2016 47.00 CALL
Quantity*: -1 contracts
Execution time: 04-09-2015 11:35 ET
Price: $0.76
Total Commissions & Charges: $7.70
Total Transaction Amount: $68.30
Trade Settlement Date: 04-10-2015 


VZ Covered Call

Action: Sell to open
Description: VZ JAN 15 2016 50.00 CALL
Quantity*: -1 contracts
Execution time: 04-09-2015 12:24 ET
Price: $1.75
Total Commissions & Charges: $7.70
Total Transaction Amount: $167.30
Trade Settlement Date: 04-10-2015

DEFY MEDIOCRITY

5 comments:

  1. Nice growing portfolio of covered calls you got going.

    Question: Have you contacted Sharebuilder to see if they will wave the ticket charge for your option trades? You might be able to get them to match a service like Interactive Brokers: https://www.interactivebrokers.com/en/index.php?f=commission&p=options1

    They charge $0.70/contract with a dollar minimum and now ticket charges. So basically for your options trades you would only pay $1 if they agree to waiving the base commission of $6.95.

    Sorry for bringing up fees so often, but I just hate to see people get eaten up by fees. And most people don't know they can ask. You have more leverage then you think, especially with an account size like yours.

    Cheers!

    ReplyDelete
    Replies
    1. GYFG,

      Thanks for the advice. I will check into it. I have been investing with Sharebuilder for about a year and a half and fortunately I have received $300 from transfer offers and am about to receive another $100 in the next month or so.

      I have actually managed to purchase about $130k worth of stocks for free when counting the rebates received. It never hurts to try to get additional savings though.

      Thanks,

      MDP

      Delete
    2. I agree on the fees. I recently asked Schwab for better options pricing and they were pretty quick to give it to me. I think mentioning how lower fees would increase my trading volume was the way to go about it. Schwab's new pricing still isn't as good as Interactive Broker or the $1.50/contract I get with TD Ameritrade, but it is a start!

      Delete
  2. Nice contracts. I'm starting to explore the "covered call" myself; first with VOD and now with PSI.TO.

    I like the buy and hold strategy, but it get boaring real quick. Options have added some much needed excitment to my hobby. It's great when you get to keep the stock and the premium.

    ReplyDelete
    Replies
    1. ADY,

      I get bored as well. That is not to say that I don't get burned on a few "gambles" For the most part I will stick with buy and holds, but a lot of my buy and holds are companies that are in some form of trouble.....Oil, REITs, TGT, GM etc.

      MDP

      Delete