Trade Update: COH Covered Calls

A quick look in my closet will tell you I LOVE Coach! Most of the money I make on trading the stock probably goes into buying purses. Well, I really LIKE the stock. No, I don’t love it. That would just be weird. No… I do not have an issue… moving on…

At the end of March, I bought 1,000 shares of Coach stock at 49.85. In April, I sold 10 55 May call contracts at $2.25. Friday was expiration day for those options and I was called out of the stock. For those new to options ‘called out’ means the stock was at or above the price I had agreed to sell for (55) on Friday and the stock was sold to someone else for $55/share. So, I made the difference (55 – 49.85 = 5.15) and the option premium (2.25) per share.

Here’s a look at my what I made from this trade:

# Shares or Contracts Purch Price Capital Out Sell Price Capital In Comm & Fees Gain / Loss

% Gain & Loss

1,000 shares 49.85 49,850.00 55.00 55,000.00 5.90 5,144.10 10.3%
10 calls 2.25 2,250.00 10.00 2,240.00 4.5%

My charts for this trade:

1304 COH


What do you think? Let me know in the comments!

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