XOM covered call closed

Yesterday afternoon I decided to close out my covered XOM call. The details can be seen above.

Originally I sold a $90 XOM call and received a $237.30 premium. Since Exxon was trading around $82 yesterday and I had essentially earned 72% of the premium after subtracting all fees, I decided to buy back the call for $67.70.

This left me with a net profit of $169.60.  Not too bad especially when combined with the $336 ESV call profit also shown in the picture above.

XOM has traded as high as $96 this year which put me "upside down" on this trade most of the year. For a while I was concerned that I might have to sell the shares at $90.00, but the shares came back down and I decided to take the option profit and remove the possibility of losing the shares.

I was extremely fortunate with my timing as XOM is trading up about $3.50 today at a price of about $86.50. Most likely all of the option profit would have vanished with today's price action.

I am tempted to resell another call and start the process all over again.

DEFY MEDIOCRITY

9 Day ESV Call Option Trade

I decided to buy 15 $7.00 ESV Oct 21 2016 Calls a couple of weeks ago and closed the position last week.

Basically I bought 5 $7.00 Calls at $.55 and then an additional 10 Calls at $.50 for a total of 15 Calls at a total investment of $800.15. I held the calls for a little over a week and then dumped them at $.75 for a net proceed of $1136.80.

For this 9 days worth of work I picked up a net $336.65 in profit. This is my first option transaction since I excercised a $32 call option to purchase 100 shares of M back in July.

DEFY MEDIOCRITY

Recent Buy --- M call exercised

Today I exercised my option to buy 100 shares of M.

• M: 100 shares @ $32.00 --- Yield  4.72%

Total capital invested is $3200 (stock price) + $253.70 (option premium paid) + $30 (exercise charge) for a total of $3483.70. While the purchase price yield is 4.72%, the yield based on total capital invested is only 4.33%.This purchase will add $151.00 to my yearly dividends.

The stock price is trading around $37.30 range as I type this. Like many retailers, M has been hammered dropping from the $70s down to a low of around $30.

It appears as though M is in a recover stage right now, but slower foot traffic in malls will continue to problematic for companies like M. We'll see how this plays out.

Forward dividends are $3200.00.

DEFY MEDIOCRITY

Option trades for $1800....Alex!!!

Here are a few of my closed options transactions for the year. I have not been posting these as it takes too much time to go over the details of each transaction.

I started the year with long term Call purchases on CAT, WMT, and CSCO (CSCO still open and upside down but getting better recently), but have moved to shorter term contracts.

I also continue to sell covered Calls on XOM, BP, and Shell. Some of these are weekly Calls and some are longer term. I have been pretty lucky as I have not lost any shares yet. I do have an XOM $79 call expiring at the end of February that could be in jeopardy. No biggie. I'll just buy back the shares later or invest in something else.

The one put I purchased as you can see below was a $50 VZ that I closed out of pretty quick.

That fucking ESV continues to get me even in option trading....LOL.

Also I have noticed buying $29 BP calls and selling $32 BP covered calls has been working pretty well so far.

Anyway, I will be happy to answer any questions in the comments section.

DEFY MEDIOCRITY