Well the third Friday of October rolled around and that means that it's expiration day for those that dabble in options. I had originally sold a call option on 100 shares of HAL which I purchased through the ESPP program at work back in August. I chose the $48 call option and sold it for $1.43 which netted me $135.01 in option premium to use as I pleased.
Since expiration day rolled around and shares of HAL were trading higher than $48 I had to sell 100 shares for $48 each, even though shares had closed on Friday at $52.47. My effective sale price was $49.35 when you include the option premium, which generated a neat little doubling of my money given a cost basis of $24.31.
If you look back at the previous post where I had sold this call option you'll see that I had actually closed out a previous call option on these shares due to a large run up in price. At the time it made sense because I could turn a larger profit on the same shares by closing the first call option. It worked out nicely as it gave me an extra $3.00 per share after factoring in the cost to close the first call. In total my sale price ended up are $46.25 and I think I might have left some money on the table as I probably could have closed out the call during the government induced dip in the markets.
Overall though I'm happy with this move as it let me turn a nice profit and I can put the proceeds to work towards better dividend growth companies. I'm sitting on a decent size cash position and any further weakness in the markets will allow me to capitalize on some better bargains.
So far this year I've received $1,434.41 in profit from selling options. I only include option premium from closed/expired positions in my premium total as the goal when I sell an option is to either purchase the shares for cheaper or to collect the premium.
I've updated my Option Summary and Portfolio pages to reflect this change.