I'm reporting a trade from yesterday where I bought to close the $39 call option that I had open on HAL. I'm way overweight HAL since they are my employer and I participate in the ESPP program and I need to start selling off some shares. For now though, I figured it was pretty good to go on and close out the call option and I will sell another one shortly, most likely within the next week or so.
I had originally sold the call option back on January 30th and received $245.25 in option premium after all commission and brokerage fees. HAL typically has moves larger than the market with a beta of 1.82 and it recently moved back down in price to the low to mid $39's. This gave me the chance to close out the call for a nice profit. In order to close out the position I paid $157.00, which after commission and fees cost me $164.98. All in all the trade netted me $80.27 in option premium as profit which represented a 2.06% return or an annualized rate of 15.34%.
I'll be looking to sell another call option once the price recovers a bit because as I mentioned my portfolio is way overweight my employer's stock. With another purchase finalizing in early April of around 90-100 shares I need to start unloading some and investing in dividend growth stocks.
I've updated my Option Summary page to reflect this change. I've received a total of $184.29 in option premium from closed/expired options thus far in 2013 with my 4 open puts most likely expiring as well to add to that total.