HAL profit opportunities with options. I gave an options webinar with TDAmeritrade on June 27 (it is archived for viewing). Let’s look at the results.
(As of Monday June 30) I bought 100 shares and the stock is up $3.
I sold the $50 strike put, it has deteriorated I am up $140 per contract. I also bought another 100 shares and sold the Covered Call $50 strike, the premium is up a $1.65 Is it a loss?
No, when I sold the CC for $2 I get $50 strike price plus the $2.23 premium so my sell price is essentially $52.23. If the price of HAL is higher than $50 at the July option expiration day, the stock will get 'called' away.
Who knows how many commissions I paid? The answer is 4. I have four separate trades on.
Chart and options chain courtesy of TDAmeritrade.
