Thursday, November 10, 2011

Trade continuation: GDX covered call

Today I rolled my GDX investment in a Roth IRA. The entire transaction is 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

Today with GDX taking a breather and down to ~60.20 at the time of this transaction, I was able to roll out the deep in the money 56 calls for a net credit of $93.46.  My cost basis/downside protection is lowered to $53.59. If I get assigned I'll make ~$241 or 4.3% which is annualized to ~26%. Not bad for a very conservative deep in the money investment.

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