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rivercity > Trade Notes

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rivercity: Trade Notes

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Sold to Open 6 contracts of YHQ BF at 0.42

rivercity posted on 02/07/08 at 02:24 PM (Note posted about 1 hour after the trade)
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Users Bought (30 Days) 0 (0%)
Users Sold (30 Days) 0 (0%)
Market Cap 0
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52-Week Low 0.00
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EPS (Trailing 12 Mos.) 0.0
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Transaction: Sold to Open
Symbol: YHQ BF
Quantity: 6 contracts
Price: $0.42
Value: $252.00
Stop Order: No @ $N/A
Target Price: $0.00

I decided that selling the FEB 30 calls looked like a pretty safe bet.  The market doesn't seem inclined to move the stock price up over 30, and I don't think Microsoft will up its offer yet - if ever.

So this looks like a pretty safe $42 a contract.   

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Posted by rivercity on 02/07/08 at 02:24 PM

Tag It | 1 user tagged it: Covered Calls

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locogmac

Member since: Sep 06
Trades Not Shared
Trade Notes 33
Blog Posts 21
Student
Age: 20's
Washington UNITED STATES
locogmac
Posted February 07, 2008 (07:16PM)

Nice play. Is this a covered call? This is probably what I would have done, except probably on the day of the announcement as the premiums would probably have been bid up a little bit more.

BTW, as far as solar stocks, I'm optimistic about them. Keep in mind that for the olympics, Beijing is using a lot of solar power to power buildings and showers and what not. I think I've only heard/confirmed Suntech (symbol STP) as one of the companies that's product is being used.  

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rivercity

Member since: May 07
5 Day -0.96%
15 Day 5.20%
1 Month 0.72%
3 Month 18.22%
6 Month -0.38%
As of: 01/08/09
How is this calculated?
Trades 1247
Trade Notes 141
Blog Posts 19
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Age: 40's
La Crosse, WI UNITED STATES
rivercity
Posted February 08, 2008 (01:23AM)

Yes, it's a covered call.  I think the stock price will continue to creep up slowly toward the offer price, so I'm hanging on to the stock for now, to sell calls against it.  I didn't sell calls on the day of the announcement, because - well - I hadn't thought it through. 

Also, depending on MSFT stock price at the time, it may be better to take the combined cash/stock offer rather than sell.  So I expect to do this a couple more times.

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