Saturday, October 15, 2011

Sold covered call with MSFT

Yesterday I sold 20 covered call of MSFT with strike price at $28 expires on Nov 19 for $.52 and collected $1040 before commission. My average purchase price for MSFT was $27 so I have some room to spare. MSFT will have ex-dividend on Nov 15 and I will collect $400 quarterly dividend. If it hits above $28 on Nov 18 and my call option gets taken out, I still make some nice profits from it. If it does not hit $28, I will write another call option for December.

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