Friday, 8 April 2016

Options trade - GM

In a previous post, I mentioned that I had bought and later sold a September 2016 call on GM that went like this:

16/Feb/2016 Bought 1 $30 Call (-$181.21)
21/Mar/2016 STC 1 $30 Call (+$293.80)
Profit: $112.59

Since I sold to close (STC) the call option above, the price of GM has gone to about $29.30 from $32.00. So today, I bought the exact same call for way less money!

08/Apr/2016 Bought 1 GM Sept 16 '16 $30 Call @ $1.46 (+$11.21 in fees)

So I paid a total of $157.21 for the right to buy 100 shares of GM @ $30 a piece, valid until September 16, 2016.