New Trade: POT

Potash Corp. was on my recent watchlist for a potential covered call trade. This stock has a trend of rising for 4wks from the end of July to the end of August. Despite POT’s recent decline of 23%, it appears to be rising into the trend. Once I saw an entry point on my chart, I picked up positions in two of my accounts.

Trading Leg
I purchased 2 Sep 40 calls @ $0.15. My exit is $0.35 with a loss limit of $0.10. The stock historically moves 8 – 10% during this trend so if needed I may adjust my exit to ride the trendline. 

Here’s a look at my potential profit:

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

% Gain & Loss

2 Sep 40 Calls 0.15 30.00 0.35 70.00 10.00 30.00 100.0%


My charts for this trade:

130516 WFM

 

Retirement Leg
I purchased 100 shares at $30.49. I’m going to sit and just let these rise and look to sell calls against them later. I may even add 100-200 more shares depending on how the stock performs. 

Here’s a look at my cost so far:

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

% Gain & Loss

100 shares 30.49 3,049.00 2.95 -%


My charts for this trade:

130516 WFM

Screen Shot 2013-06-18 at 8.07.12 AM

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2 thoughts on “New Trade: POT

    • No, I was just being cheap but I feel the stock will rise enough to move my position. You know the rules… I should have purchased the $30.

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

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