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Trade exit – Taser Inc (TASR) covered call (13.47% profit); Safeway (SWY) put selling (9.57% profit)

This expiration Friday I had two other option trades being closed. One was a covered call against Taser International and the other was a put selling against Safeway.


Taser International Inc. covered call assignment

This trade finished as per I wanted, although from the beginning it wasn’t that clear and easy. But I believed in this company and it actually exceeded my expectations. The final run up was impressive and made me feel that I should have gotten rid of the covered call option and keep the stock.

Well, as I try to emphasize: this wasn’t my plan.

In this post you can check my very original trade I opened in January this year.

On March 22, 2013 after this trade expired worthless I opened a new covered call trade (2nd trade adjustment) and this Friday on September 21, 2013 the covered call was assigned. That means that the stock was called away as per my original plan with nice 13.47% profit ($116.44) or 28.66% annualized return.

Safeway put selling

The next trade was put selling against Safeway. You can see the original trade opening comments here.

This put option expired worthless and I could keep my $220 premium making it a nice 9.57% profit or 18.44% annualized return.

I will be opening new trades on Safeway shortly after analyzing the stock. I still like the stock as a good candidate to own for dividend return so I will be selling puts against this stock as long as I get assigned or make enough cash to buy the stock for free.

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