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Wednesday, October 27, 2010

Gold Covered Call

Sold a gold covered call today. Made $327.00.
Premium: $3.27 (sell to open)

GLD was purchased at $129.24/share.

On Dec. 1, 2010, I "rolled" this Dec 2010 $130 call into a Jan 2011 $129 call.
This order was placed as a "spread".

Premium: $7.85 (sell to open)
Premium: $5.80 (buy to close)

The math:

($3.27 + $7.85) - ($5.80) = Net $5.32 per share