. . went ex-dividend this a.m. The share price dropped by (more or less) the value of the dividend. Refer to my posting of 16th. March. The share price remains below the strike price of my "short" September 260 Calls options on the stock. So I was not assigned for the dividend. I keep the stock and will be paid the dividend in due course. What happens next? If the stock price climbs above 260p before the options expire in September, I could be assigned at any time and will certainly be assigned on expiry day - i.e. I must sell the stock to the counterparty at 260p per share regardless of the market price. If the stock price remains below 260p through to the September expiry, I will keep the shares, pocket the loot paid to me when I sold the Call options and look to selling a further round of Call options for December (or March 2010) expiry, at a strike price to be determined by the current price of the Centrica shares. Look at it another way. Every time I sell Call options on the stock without subsequently being assigned I effectively reduce the price I paid for the stock when I bought it . . .
"Give me control of a nation's money and I care not who makes the laws." (Mayer Amschel Rothschild)
"Most people are obsessed with money. Hardly anyone is interested in it."
(Wm. Shakespeare)
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Some Useful Links
FTSE 100 Shares Index (Value) 15 minutes delay. BBC Page
FTSE 100 Shares Index (Graphs) 15 minutes delay. BBC Page
ICE Option Pricing Model. 15 minutes delay.
eMail dr.ftse@gmail.com (wkr.inv.club@gmail.com) which deals largely in Traded Options, particularly Options in the FTSE 100 Index. The Club's objective is to make 1% PER MONTH for its members.
Since it's inception in August 2000 the Club has paid out £253,000 in profits to members. Members are strongly advised to withdraw accumulated profits regularly; trading options is always riskier than trading in the underlying securities (i.e the 100 companies whose shares make up the so-called 'FTSE 100 Index')
SILLY BLOG: This is Getting Very Silly
POEMS: The Doc's Homeopathic Poetry
TEAM BLOG Fridge Soup
My Open Option Contracts
(Updated weekly on Friday at close of business, or whenever I re-arrange any of my positions - except I haven't updated them for MONTHS because no one ever reads the blog. See my comments above!)
FTSE INDEX OPTION CONTRACTS
12 x 6850 Short (*) Calls (November 2014 Series)
12 x 6300 Short Puts (November 2014 Series)
Index closed at 6495.6 on 07/10/2014
Expiry on 21st. November 2014
(*) "Short" in the context of option trading means the contracts were opened by selling them.
FTSE INDEX OPTION CONTRACTS
12 x 6850 Short (*) Calls (November 2014 Series)
12 x 6300 Short Puts (November 2014 Series)
Index closed at 6495.6 on 07/10/2014
Expiry on 21st. November 2014
(*) "Short" in the context of option trading means the contracts were opened by selling them.
(**) "Covered" Calls means I have the shares to meet any assignment by the counterparty
(***) "Cash Covered" Puts means I have sufficient cash in my trading account to buy the shares if assigned by the counterparty.
(***) "Cash Covered" Puts means I have sufficient cash in my trading account to buy the shares if assigned by the counterparty.
Wednesday, 22 April 2009
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I don't leave comments on blogs that use Word Verification. Ditto blogs which I know have Comment Moderation applied. Life's too short and I'm too busy makin' money and what the Hell are these people scared of anyway? If you don't like some creep's comment . . TRY DELETING IT! You have that privilege.
And I never read unpunctuated so-called poetry. I don't understand why self-styled poets think it's clever to make their work difficult to read/understand.