Thursday, March 7, 2013

Options Trade - Waste Management (WM)


Today I am reporting an options trade with WM on 03/07.  I logged into my account to find that the WM Call I had sold was assigned.  Considering the run WM has had and it was right before the ex-dividend date I'm not surprised they were called away early.

I posted my reasoning for selling the call here.  I had already planned on losing the shares and have since replaced them with SO since WM acts as a utility anyways.

The Trade:

1.) 100 shares of WM called away

I originally sold a July 20 '13 $34 Call for $130 in premiums
I received $3400 + $130 in premiums for a total of $3530.

My cost basis was around $29 so I made a decent profit.  Part of these shares will be taxed as long-term and part as short-term capital gains.  This will be fun to calculate next year for taxes.

I currently have 16 open options positions and a total options profit of $1178 for 2013.  My options page has been updated accordingly.

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