No criticism taken. I appreciate the feedback. I have no idea how much higher SPY is going to go. Selling a call seemed like a way to test the waters here. If the position gets closed out it's not big deal. And if it doesn't, it's also no big deal. I have no data suggesting that a new x-year high means price is any more likely to continue to go up. For example, on 4/2/2012, SPY made a 3 year and 11 month high of $142.21, and then 2 months and 2 days later had fallen around 16 points. But I'm curious to see what price does now, regardless.
9/7: Open position: SPY: $626.00 Call proceeds: $64.75 ------------------------------------ $691.75 14 calendar days until option expiry Max potential SPY value is $144.99 ($692 profit) above which my position will be called away.
9/10: Open position: SPY: $544.00 Call proceeds: $64.75 ------------------------------------ $609.75 11 calendar days until option expiry Max potential SPY value is $144.99 ($692 profit) above which my position will be called away. 9/21 is the next ex-dividend date
Sorry I didn't post an update yesterday; I was visiting family. Here is yesterday. 9/11: Open position: SPY: $584.00 Call proceeds: $64.75 ------------------------------------ $649.75 And here is today. 9/12: Open position: SPY: $632.00 Call proceeds: $64.75 ------------------------------------ $697.75 9 calendar days until option expiry Max potential SPY value is $144.99 ($692 profit) above which my position will be called away. 9/21 is the next ex-dividend date
9/13: Open position: SPY: $852.00 Call proceeds: $64.75 ------------------------------------ $916.75 However my SPY gain is capped at a price of $145, which gives me: SPY: $693 Call proceeds: $64.75 ---------------------------- $758.75 The chart reflects this capped value. 8 calendar days until option expiry 9/21 is the next ex-dividend date
9/14: Open position: SPY: $917.00 Call proceeds: $64.75 ------------------------------------ $981.75 However my SPY gain is capped at a price of $145, which gives me: SPY: $693 Call proceeds: $64.75 ---------------------------- $758.75 The chart reflects this capped value. 7 calendar days until option expiry 9/21 is the next ex-dividend date
9/17: Open position: SPY: $867.00 Call proceeds: $64.75 ------------------------------------ $931.75 However my SPY gain is capped at a price of $145, which gives me: SPY: $693 Call proceeds: $64.75 ---------------------------- $758.75 The chart reflects this capped value. 4 calendar days until option expiry 9/21 is the next ex-dividend date
9/18: Open position: SPY: $855.00 Call proceeds: $64.75 ------------------------------------ $919.75 However my SPY gain is capped at a price of $145, which gives me: SPY: $693 Call proceeds: $64.75 ---------------------------- $758.75 The chart reflects this capped value. 3 calendar days until option expiry 9/21 is the next ex-dividend date
9/19: Open position: SPY: $863.00 Call proceeds: $64.75 ------------------------------------ However my SPY gain is capped at a price of $145, which gives me: SPY: $693 Call proceeds: $64.75 ---------------------------- $758.75 The chart reflects this capped value. 2 calendar days until option expiry 9/21 is the next ex-dividend date This position will likely be closed either tomorrow or Friday (unless price drops to under $145).
Sorry for not updating for the last few days. I was visiting some family and taking some time away from the internet. Shares were called away. No dividend. Profits for the trade were $749.50. Nice little pullback today. May enter again soon. I will update this thread periodically in the meantime until I open another position.