In February, I purchased 300 shares of MMM for a covered call trade. This week I sold March calls against those positions. When I sold the options, the stock was in the 133 range. I don’t see the stock being at 135 come expiration Friday (21 March) so I sold the 130 calls instead of the 135.
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
|3 Mar 130 calls||–||–||4.10||1,230.00||0.00||1,230.00||3.1%|
My charts for this trade: