Took a profit on AT&T (T) Calls

With only four days and a couple of hours to go before options expiration I decided to go ahead and take my profit on the July 40 calls I bought on T while T was trading at 40.29. My trades went down like this including commissions:

7/11/07 – Bought 4 calls to open @ $0.30 for $132.99
7/13/07 – Sold 2 calls to close @ $0.70 for $128.50
7/16/07 – Sold 2 calls to close @ $108.50

That’s $104.01 in profit on $132.99 invested. T could get back to its climbing ways again tomorrow, but I figured ~78% profit in 3 days was a good time to walk away. With naked puts I’ll sometimes wait two months for that much of a dollar profit sometimes. I’m looking for more stocks I think follow this type of trading channel to see if I can work these into my trading model a little more often.

Speaking of trading channels, HAIN made it up to 28.04 on Friday and 28.09 today before hitting that ceiling I wrote about last week that I thought would be around 28.00. If HAIN does break above 28 I think it’ll be the right time to get back in. Otherwise it could head back towards 26.

Technorati Tags: naked puts, investing, stocks, options, covered calls, options strategies, trade, stock chart

Read more on AT&T at Wikinvest

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