I’m reporting an option that expired worthless and a new options trade.
I had a Mattel option expire worthless while on vacation on 07/19/14.
The original trades:
02/03/14 Sold 1 MAT July 19 ’14 $36.00 Put @ 2.42; posted here
Since MAT was trading above $36.00 on 07/19/14, this option expired worthless and I got to keep $242 in options premiums.
In light of recent weakness in shares of MAT, I decided to take the opportunity to sell two more puts.
07/28/14 Sold 2 MAT Jan 17’15 $36 Put @ 2.55
This trade could turn out a few ways:
1) I hold shares until expiration and shares are trading above $36.00. I will get to keep the $510 in options premiums.
2) I hold shares until expiration and shares are trading below $36.00. I will get assigned 200 shares of MAT at a cost of $33.45. This would correspond to a yield on cost of 4.5%.
3) Shares of MAT go on a run and I decide to buy back the put early for a profit less than $510.
I currently have 8 open options positions and profit for 2014 of $1402.
My options page has been updated accordingly.