The Investment Road to Freedom

May 8th, 2013 at 7:10 pm

Ford – Rolled Up and Out Option Trade

Yesterday May 7th with Ford (F) trading at $14.18 I decided to buy back my MAY2013 $14 covered call option for $0.33, which after commissions cost me $47.98. This stock has been in my taxable account since March 2012 and I did not want my shares called away. Later in the day I then sold another call (JAN2015 $17 Strike price) at $0.83 bringing in $68.01 after commission. The net credit from this roll up and out is $20.03.

Below is the history of Ford trades in my taxable account this year

  • 01/28/2013 Brought 76 shares at $13.77
  • 02/08/2013 STO 1 Call MAY2013 $14 at $0.36. Stock was at $13.11 at time of transaction. Received $21.01 after commission.
  • 03/02/2013 Dividend 24 shares at $0.10. Received $2.40
  • 05/07/2013 BTC 1 Call MAY2013 $14 at $0.33. Stock was at $14.18 at time of transaction. Cost me $47.98 including commission.
  • 05/07/2013 STO 1 Call JAN2015 $17 at $0.83. Stock was at $14.19 at time of transaction. Received $68.01 after commission.

My cost basis in the stock is now $13.17. My capital invested is $1364.30.

Please note I also own another 100 shares in my Roth IRA.

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