Tomorrow is option expiration date and I have two option positions that will likely expire worthless. First is the covered call on my Microsoft position. For the time being, I'm not going to sell another covered call on this trade. Microsoft dropped back down to the $25 in the last couple weeks and there just isn't enough premium available in the options to risk losing the stock. If MSFT jumps back up to the $27 range, I'll look again, but for now I'll just hold the stock.
Next is the latest set of Cisco puts. This has been a good trade so far with a total of $1.77 in premium collected per option. Cisco has had a good run lately though and it's ran away a little bit from the $16 strike I've been using. With the big drop in the markets today bumping up volatility and option premiums with it though, I'm looking at selling another series of puts on Cisco. If and when I do, I'll do another post. Otherwise I'll just let them expire and wait for a better trade.
No comments:
Post a Comment