I took advantage of a Qualcomm price drop this morning and closed my two Qualcomm Option covered calls. Luck was on my side with these two trades. I opened the first on covered call on June 28th and the second on July 12th. I didn't have to wait long to close both Qualcomm options and realize profit.
Qualcomm Option 1
- Expiration Date: 1/19/18
- Fees :$1.10
- Strike Price: $62.50
- Premium: $1.65
- Annualized ROR: 17.23%
- Realized Profit: $64.90
Qualcomm Option 2
- Expiration Date: 08/25/2017
- Fees :$1.10
- Strike Price: $58
- Premium: $1.31
- Annualized ROR: 77.80%
- Realized Profit: $98.90
Given a 2018 expiration date, I considered leaving option 1 open a while longer. But, I decided to lock in $64.90 in profit. Option 2 was a no-brainer. It only cost me $31 to close this option and realize most of the contract revenue. I took home $98.90 on this contract.
All told, I realized $163.80 on these two trades. So far for the month of July, I've made $214.60 selling options. I expect to close a few more contracts before month end, that is if markets go the way I'm predicting. I'll probably sell two more Qualcomm options as soon as the stock price returns to its previous price.
My realized revenue total from options this year is now $4,114. I'll update my options income tracker at the end of the month. Check my options tracker to see a list of all open call and puts I have. I now have 13 open contracts, representing potential revenue of $4,217. Keep in mind that I rarely let contract expire. I usually close contracts when I have earned at least 50% of the total premium value. This is not a rule of mine, but I usually prefer to capture gains above 50%. You never know what markets will do and keeping 50% is better than losing shares due to market fluctuations.
How are your option trades going this month?