The Investment Road to Freedom

August 28th, 2013 at 10:02 am

Coca-Cola – BTC and STO

Quick Option trade to report from yesterday. I brought to close my Sept2013 $40 strike price put for $2.28 which after commissions cost me $242.98. Every time I buy back an option I want to make sure I have made a profit so I immediately sold a Jan2014 $40 put for $3.06 which after commission earned me $291.01. So this created a net credit for $48.01. This is in my taxable account

Now why did I do this? My original Sept2013 put still had some time left and the stock which is at $38.44 could easily rise back over $40. Well this decision was not driven by the market. No this was driven by my HVAC unit dying over the weekend and me needing $6k for a new one! So I’m basically moving money around the best I can trying to cover those costs. More updates to come on my monthly review.


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