New CC Trade: DECK

I purchased 400 shares of Decker at $53.60 per share for another covered call trade. I sold 4 July 55 call options at $1.31. I then attempted to make additional profit by buying 8 Jul 55 put options against the shares as well. I always get confused when attempting this which is why I have yet to do it with real money until now. Unfortunately, I was wrong and lost a little money before I realized I was incorrect. This move would only work if the shares were falling.

Here’s a look at my potential profit if called out on expiration Friday:

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

% Gain & Loss

400 shares 53.60 21,440.00 55.00 22,000.00 5.90 554.10 2.6%
4 calls 1.31 524.00 10.00 514.00 2.4%
8 puts 0.85 680.00 0.80 640.00 16.00 -56.00 -0.3%
TOTAL PROFIT 1012.10 4.7%

My current charts for this trade:

130304 HLF


One thought on “New CC Trade: DECK

  1. Pingback: Closed CC Trade: DECK | Tela's Trading Journal

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