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Expiration Friday tomorrow – collecting gains and creating a ladder

Tomorrow is expiration Friday. My favorite day.

Tomorrow I will officially collect my gains. Although I collected them physically a few months ago when I opened my options trades, those gains were still in jeopardy of being wiped out.

Tomorrow those gains will be mine forever.
 
 
(MORE: Options Assignment – Southern Company (SO))
 

So what stock option trades I have and what steps do I have to do to close them? Here is a review:

1 DMD Nov 16 2013 10 covered call – this trade will expire worthless and I will keep the entire $120 premium. A 100% gain for this trade, 30.57% overall ROI and $229.69 collected in premiums up to day. On Monday I can repeat the trade and open another covered call.

1 EGHT Nov 16 2013 7.5 covered call – this option is ITM and will be executed. That means that I will be forced to sell 100 shares of EGHT. This was however my plan from the very beginning. I call this a total return covered call. Unlike with DMD I will collect profit on stock and I keep premiums collected. Profit 32.53% and overall $179.44 profit (on a stock and premiums). I like the stock so far and may use it in the future for more option trades.

1 GLW Nov 16 2013 13 put – this trade will expire worthless and I will keep $100 premium. On Monday I can repeat the trade selling yet another put. Profit 7.69% annualized profit 13.15%

1 GLW Nov 16 2013 15 put – this trade will expire worthless and I will keep $115 premium. On Monday I can repeat the trade selling yet another put. Profit 7.67% annualized profit 19.00%

1 SWY Nov 16 2013 32 put – this trade will also expire worthless tomorrow and I will keep $40 premium. On Monday I will be able to open another put selling trade. Profit 1.25% annualized profit 9.49%

 
(MORE: Options ladder. What ladder?)
 

Remember, all above trades are either covered calls or naked puts (put selling). On Monday my maintenance cash will be released and I can start selling more puts or covered calls.

To do so I will do it in order to create an option ladder as I wrote about it in my previous post.

 
(MORE: Intro to selling put options)
 





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