With all that blathering, I forgot to report that yesterday I closed SVXY June 26th 85 strike puts for 95 cents; I had collected $3.20 originally, so that's a profit of $2.24 per contract, times 100 for the standard block, times 4 contracts for a total of $879 profit booked after commission.
It's very possible I could have gotten a lot more out of that, but I could not resist the way the put lost so much value so quickly. Plus, if the security does drop, I could always write that contract again for more than 95 cents and double-dip on the same thing. Go back for seconds, in other words. Nothing like making extra premium by timing the ups and downs of the decay of the contract.
I'm not expecting to do this; I've moved on, in my mind, but it would be a bonus. I've done it before on some other eventually-worthless calls or puts (can't remember which), and it was great to collect free extra helpings!
I didn't buy those puts back for any reason other than needing buying power in my account, though. I believed it would be necessary to buy some shares to secure my now-naked calls, and I may still have to do that (but haven't yet.) Otherwise, I would have let those decay more, hopefully to zero.
No comments:
Post a Comment
Say what you think about this.