Sunday, 1 February 2015

Weekly Option Expiration - January 30, 2015

I sold five different put positions for January 30 expiration. 

My CL, MCD and SBUX  puts were OTM (out-the-money) on expiration day. Therefore, I let them expire worthless and collected the premiums generated through placing the trades.

My PG and XOM positions were ITM (in-the-money) on their date of expiration. To prevent assignment, I rolled both positions to the following week.

After PG announced earnings, the stock dropped. I bought to close my five short puts for $1,183.71. I sold 5 PG $88 Feb 6 puts for $1,191.24. After placing the sell order, I noticed the credit would only be $7.51. My order was filled before I could change it.

As the price of oil declined, the XOM stock price fell below $89. I closed my position for $911.24 and sold the Feb 6 puts for $1,508.72; receiving a credit of $597.48. I dislike holding ITM short puts into earnings week. 

The following is a list of my expired option positions. Premiums are the amounts of cash I received after commissions. My option premiums are included as income in my monthly blog posts on the date the income is received.

Date        Position           Premiums

01/23   5P   CL      $66         $183.75
01/23   5P  MCD   $89         $258.75
01/23   5P   PG      $88         $148.75
01/27   5P  SBUX  $87         $113.75
01/27   5P  XOM   $89         $133.75

Ticker Symbols

CL - Colgate-Palmolive

MCD - McDonald's Corp
PG -Proctor & Gamble
SBUX - Starbucks
XOM - Exxon-Mobil

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