DSX Option Assignment in my IRA
This is one to be happy about. In my wife’s IRA I bought 200 DSX at 31.15 on May 2nd ($6,239.99 cost) and 45 minutes later sold in the money June 30 covered calls (DSXFF) and received $528.50 after commissions. This morning I received an email that the calls were exercised and I was forced to sell my shares. I received $5979.97 after commissions for the 200 shares. That gave me a $268.48 profit in just three weeks. That was my profit planned for June 20th, four weeks away. Now I get to use my freed-up cash to write a new position. I’ll probably go back in for more DSX shares if it drops a little more and will write the July contracts this time.
To calculate my return on that position I take my profit and divide out my original cost. I come up with a 4.3% gain in three weeks. That’s […]
Original post by Alex Fotopoulos