RE: C

Posted by Jack Haddad on January 23, 2008 at 11:57 am

On 12/31/2007, the following was done:

“Bought 4 blocks of C at 28.96, and wrote 400 Jan strike 27.50 at 2.12/contract for intrinsic value of .66/share times 40,000 shares.  The intention behind this strategic play is similar to the one I did on INTC earlier– To have my underlyig shares taken away by Jan option expiration.”

Because C closed below 27.50 when Jan options expired, I pocketed  the entire premium of 2.12/contract times 400 contracts.  Today, I wrote 400 Feb Strike 27.50 at .59/contract.  While I’m not impressed with the premium, it’s bettern than simply holding the underlying shares alone without earning anything.

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