Sunday, 22 June 2014

SLW, called away early.

Another update for Silver Wheaton (SLW)

My position of 400 shares have been called away at $25 each netting me $9956.00 for this stock. Back into a position of heavy cash.

Lets break down the total return (net)

Bought                                                             $24.11          $  9646.00
May, June, July (options)                                  $  0.88          $    354.00
Sold                                                                 $25.00          $  9956.00

Total Profit                                                                            $    664.00

percentage                                                                             %      6.88

Not bad for a (roughly)10 week holding period. Well at least its better then the 1.257% of just holding the stock and collecting the dividend.

Now onto the next stock to do the option trade on.

Stay tuned while I sort out which company to choose from.

Friday, 13 June 2014

Update Silver Wheaton (SLW) 

Seeing that SLW was on the move upwards yesterday I have bought the June $24 call position for .40 cents each costing me $183. Today I have written the July covered call for $ .55 cents each earning me $197 net. 

Best case is for the shares to be called away at $25, would capture $1.45 each (.90 + .55) or 6.02% for the five week holding period. The worst case would be that it doesn't get called away at $25, as it'll only earn me the .55 (gross) or 2.28%. Still at the low end not a bad return for the 5 weeks.  

Bought at                               $24.10
May covered call                   152.00               0.38
June covered call                   188.00               0.47       

BTC, June  contract             -183.00               0.46 (rnd)        
July covered call                  $197.00               0.49
Total collected                     $354.00               0.885              3.67%


Still not bad over the dividend percentage of 1.257% 

Lets see if SLW has the legs to get up to the $25 dollar mark in the coming 5 weeks. 

Till then happy trading