Sell 5 BHP Apr 9.73 Calls @ 0.20

I can’t add! In the last article on option trading, I said my net premiums on BHP were $0.495. The numbers given add up to $0.595! Actually now that I’ve checked my trading statements the after commission premiums are $0.4593. I pulled out my written trading strategy ;). It told me to write 5 BHP …

Applying for a loan

Last week I was talking to an couple with a nice portfolio of investment properties and direct shares. They had just financed their latest acquisition after a mountain of hassles. For smart people they were stuck in an eighties view of finance. They called their bank and got rejected. They then called a friend’s finance …

Buy 5 BHP March 9.49 Calls @ 0.05

That represents $0.17 x 5265 to close out the position. As these are covered calls I own 5625 BHP against which I write these calls. Since doing this BHP has gone from $9.95 to close today at $8.93 so it’s fallen $1.02 (my average buy price was below $9.95). In the same time I’ve earned …