Existing Trade: MMM

At the start of this blog/journal, I already held two positions in MMM.

In my Trading Leg, I have 2 Mar 105 naked call options. Purchase price: $0.40/contract ($80.00).

In my Roth IRA, I have a covered call position. On Feb 5th, I purchased 500 shares at $101.85. My intent is to hold the stock for a couple weeks prior to selling 5 March 105 call options and to be called out on expiration Friday (Mar 15th). At this time, the March 105 call options are selling for 0.71 – 0.74. This premium (price) will increase as the stock rises but, time decay will be a factor. The table below reflects the potential profit I could make if I sold the call options now and am called out come expiration Friday (without accounting for commission/fees).

Sym

Shares Purch Price Capital Out Sell Price Capital In Commission & Fees Gain / Loss

% Gain & Loss

MMM

500 101.85 $50925.00 105.00 $52500.00 $1575.00 3.1%

Mar 105 Call

500 $0.00 0.71 $355.00 $355.00

I entered this trade as my earnings research on MMM shows the stock rises Feb – Apr (9 out of the past 11 yrs) and my charts indicated an uptrend for the stock.

Here is my current chart for this trade:

1302 MMM

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3 thoughts on “Existing Trade: MMM

  1. Pingback: Trade Update: MMM | Tela's Trading Journal

  2. Pingback: Covered Calls: Doing the Math | Tela's Trading Journal

  3. Pingback: Trade Update: MMM | Tela's Trading Journal

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