Saturday, February 18, 2012

Profitable Trade: GDX Covered Call

Yesterday I closed out a GDX Gold Miner's ETF investment in a traditional IRA as follows:

10/25/2011  10:37:57     Bought 100 GDX @ 56.7268                              -5,682.67    
10/25/2011  10:38:30     Sold 1 GDX Oct 28 2011 56.0 Call @ 1.52               141.23    
10/27/2011  10:52:44     Bought 1 GDX Oct 28 2011 56.0 Call @ 3              -310.76    
10/27/2011  10:53:06     Sold 1 GDX Nov 19 2011 56.0 Call @ 4.1                399.23    
11/10/2011  10:11:02     Bought 1 GDX Nov 19 2011 56.0 Call @ 4.6          -470.76    
11/10/2011  10:12:04     Sold 1 GDX Dec 17 2011 56.0 Call @ 5.75              564.22
12/19/2011  10:15:55     Sold 1 GDX Feb 18 2012 56.0 Call @ 1.5                139.20

02/16/2012  13:22:44     Sold 100 GDX @ 54.15                                        5405.10

I would have written a new call on this transaction, however, the person who I was trading for passed away and my involvement with the account ended as well. In this trade we made $185.10. This equates to 3.42% or 10.95% annual.

It should be noted that before we entered into this trade we actually collected $489.25 in put money which we are not reflecting in these calculations.

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