Buy 100 shares at 5.18, sell September 5 call at 0.90.
Initial Investment = 518
Option Investment Value = 590
Option Income Yield = 13.9
Option Total Profit = 500 - 518 + 90
= 72
Strike Price Value = 500
Investment Profit = -18
Option Income = 90
Expected Price Value = 600
Difference from Option Strike Price and Expected Price = -100
You sold the shares at the option strike price of 5. The market price was 6. You sold out early and missed 100 in stock profit. With covered call profits, the net result is -10.
Covered Call Calculator
Tuesday, September 2, 2008
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