On March 26, I bought to close my call option on CSX and then proceeded to sell the 200 shares linked to the call. I made $119.10 over 69 days, net of all commissions. That’s a return of 2.85%, or 15.13% per year on my original investment of $4179.93. This is how it played out:
Initial purchase - $4179.93
Call premium received + $417.54
Buy to close call – 934.45
Sold 200 shares +4787.94
Dividends received +28.00
I am in the process of looking to sell another covered call, but haven’t put my finger on a specific stock yet.