Tuesday, August 2, 2016

Celgene - Cash Secured Put Option

In this post, I just want to start showing some options trades I am making in Options House to make a little extra income each month.  This is my first time doing a weekly option, but I wanted to try it out and see my results.  On 8/1/2016, I sold a cash secured put for Celgene (CELG) with $113.00 strike price that has expiration of 8/5/2016 for $0.86 per share (100 shares).  This meant I received a premium on this trade of $80.49 ($86 - $0.06 (fee) - $5.45 (commission) ).  As of today, the stock price is $114.29 and if at the end of the week the price remains at this level, I will keep 100% of this $80.49.  If it goes to $113 or below, I will be be put the stock at $113.  I still keep the premium, but my basis is lower because of this premium.  Let's see what happens!

2016/08/14 -  See results of the above here

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