Citigroup Written Calls Expire

by billb 14. August 2008 18:45
I've been known to put things in the book too early, but I think it's safe to say that my C calls are going to expire tomorrow.  So now the total premium collected so far is $90 per call.  The $20 strike was probably a little too close based on volatility, but I squeezed out with a profit.  For a quick recap, I sold the $22.50's for $40 and was assigned as C continued to plunge.  I sold the August $20 for .50.  I've got my eye on the $22.50's for September.  I would like the juicy premium for the $20's, but overall that would lock in a loss if assigned.  The $22.50's are selling for ~.20.  That would give me a 1% return for the month.  Not bad, but not super hot either.  My other alternative is to wait and hope that C rebounds a bit more and either the $25's look good or the 22.50's beef up so that the monthly return looks a bit more attractive.  I haven't made up my mind yet and there's still another full day of trading tomorrow to see where things end up.

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8/20/2008 11:11:27 AM

Dividend Growth Investor

Thanks for commenting on my article on how much money one might need to retire.
dividendgrowth.blogspot.com/.../...tire-on-is.html

I have a question regarding your Citi position. At what price did you purchase the shares?

Dividend Growth Investor us

8/20/2008 11:39:05 AM

billb

I appreciate you writing the thought provoking article. I sold a 22.50 put and was assigned. My original premium collected was 0.40, so my cost basis is 22.10. I've since had a call expire which has lowered my basis to 21.60. Hope this helps.

billb us

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