As expected my shares of SLB were “called away” with my covered call for a nice profit over 4 months that started with me selling ITM puts that were assigned to me and then OTM calls that were called away. My CMCSA shares were called away too, although it could have gone either way with CMCSA. CMCSA is up in pre-market, but I can’t buy back in due to the wash rule for 30 days. I was only 3 cents away from really making new easy money on it. My MA puts expired worthless as they were around $30 OTM.
My cash is up to $36,489.20 and my entire account value is at $52,710.20 pre-market. That puts my potential percent invested to 143.26% with only ~$30,000 to write options with until expiration in June. That’s probably four trades I can make without going over 200% invested. I might go deeper closer to the end if more of my positions are well OTM for puts and if AAPL stays well ITM.
I still don’t completely get why this market continues not to take another breather. I’d like to stay more liquid to wait for the pull back, but I also don’t want to miss this ride which has been great.
2 thoughts on “Account Holdings Update”
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If you have time, could you explain the 30 day wash rule? Also, i guess no one knows when this market will end; but you would have to expect gains to slow over the coming Summer months in order for there to be a Fall rally. But, if it goes straight thru with just a hiccup, like what occurred a couple of days this Spring, then we will all be amazed. Congrats with SLB play, I’m on the bubble for Applied Materials to get down or close to 17 by July option expiraton.
The wash rule relates to how you can take losses on a stock for tax purposes. If you sell (or buy back a short) for a loss you cannot write off the loss on your taxes if you buy the stock back within 30 days. I assume the same rule would (or should) apply to selling an option months away because you are still taking an interest in an underlying stock. I don’t like to push my luck with IRS rules, so I’ll just leave CMCSA for now.