CELG – Covered Call – 7/31/18

CELG – 7/31/18 – Covered Call

This is a standard covered call I entered in CELG. You will notice on the chart below how the price changed over the 37 days I was in the trade and how I defended my short Calls. The only mistake I made was on 8/31 I was going to allow the position to be called away but decided to roll for one more week. That decision cost me as the price dropped and forced me to manually close the trade on 9/6.

I probably could have stayed in the trade because I still liked CELG but I was in the process of closing an old trading account I had in which I was trading this position and decided to just close it and move the money to the other account.

Well, this trade won’t make you rich overnight but I did make $114.67 on my initial risk of $8,915.61 which is about 1.29% over 37 days. This is a 12.69% annualized return. When trading covered calls it is the annualized return that is important. It probably would have been twice as high if I had allowed it to be called away the week before.

Date   EXP Strike Price Ct C/P Cost Balance
07/31/18 Buy 100 Shares 90.07 -$9,011.95 -$9,011.95
07/31/18 SO 08/03/18 0.97 1 C $96.34 -$8,915.61
08/02/18 BC 08/03/18 0.5 1 C -$55.60 -$8,971.21
08/02/18 SO 08/10/18 1.21 1 C $120.35 -$8,850.86
08/10/18 BC 08/10/18 1.51 1 C -$156.60 -$9,007.46
08/10/18 SO 08/17/18 1.76 1 C $175.35 -$8,832.11
08/16/18 BC 08/17/18 0.65 1 C -$70.60 -$8,902.71
08/16/18 SO 08/31/18 1.83 1 C $182.35 -$8,720.36
08/31/18 BC 08/31/18 3.33 1 C -$338.60 -$9,058.96
08/31/18 SO 09/07/18 2.28 1 C $227.35 -$8,831.61
09/06/18 SELL 100 Shares 89.61 $8,955.93 $124.32
09/06/18 BC 09/07/18 0.09 1 C -$9.65 $114.67
Profit of: $114.67

Share and Enjoy !

0Shares
0 0

Leave a Reply

Your email address will not be published. Required fields are marked *