NEW UCPTD Trade Alert - Option Buy Back - ABBV - Covered Call

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	NEW TRADE ALERT
	Friday, February 14, 2020
	Covered Call Option Buy Back
	Closed a Covered Call position with Abbvie Inc. (ABBV) this week
ORIGINAL TRADE	TRADE KRUM! (see details below)		DAYS	Cash on Cash %	Annualized
	$514.96		3	2.90%	352.38%
	The trade results and did it meet expectations?
	CLOSED OUT MY ABBV TRADE EARLY - WHY? I didn't want my ABBV shares taken ... its Friday, this option expires today and the stock is trading UNDER the money - I didn't want to chance it and have the stock price poke up above my strike ... so with a LIMIT order in place at 0.10 ABBV stock fell just enough to trip, the BUY BACK happened and now I can move on. Pocketing a little krum just as I thought ----> READ my original post ---> Notice that my calculations below are not based on the current stock price of ABBV rather instead when I purchased the stock + the dividend I received ... reason, I bought the stock for a CCW+DIV Capture trade ... I bought the stock but the price action didn't materialize for a CCW so I held the stock ... which lucky me, caught a little wind under its sails and is now trading higher from my stock purchase price. With my investment now gaining some 8% in this very short window and ABBV trading above its 50 SMA ... I feel that it might PULL BACK a bit and I can take advantage of TIME DECAY with a 3 day option expiring Friday Feb 14th. My Expectations are that the stock will run out of gas and NOT stay above its current stock price of $95.98 (price at time of this posting ... time value will shrink and even IF ABBV trades above my strike $95 (ITM) I can buy back this option CHEAPER by Friday, pocket the difference for a short term, couple hundred buck profit and look to do it again.... if my shares are taken ... a very profitable 11% trade in this very short window. ALSO NOTICE > DELTA says this option has a 65% of finishing ITM and that's probably because this trade is an IN THE MONEY trade ... I'm guessing not based on what I've written above :)
	ORIGINAL TRADE BREAKDOWN
	DATE	COMPANY	SYMBOL	SHARES	STOCK WAS
	Feb-11	Abbvie Inc.	ABBV	200	$88.90
	CCW STRIKE	EXPIRATION	PREMIUM RECV	CONTRACTS	CoC % ROO
	$95.00	Feb-14	$1.50	2	9.88%
BUY BACK	WHY DID I BUY THIS OPTION BACK?
	read above on this one
	RESULTS FROM THE OPTION BUY BACK
	SYMBOL	WHEN STOCK WAS TRADING @			CASH PROFIT
	ABBV	$94.5x			$514.96
	PREMIUM RECV	BUY BACK PRICE	REAL $ ?	DIFFERENCE / TV $	CoC% GAIN
	$1.50	$0.10	$0.00	$0.10	2.90%
	Always look at a company's chart ... it tells a story and that story could be UP or DOWN

	Education Corner
	Great Covered Call video posted at
	Covered Call - Description - A covered call is a financial market transaction in which the seller of call options owns the corresponding amount of the underlying instrument, such as shares of a stock or other securities. ... writing (i.e. selling) a call generates income in the form of the premium paid by the option buyer. Source - https://en.wikipedia.org/wiki/Covered_call
	Disclaimer - Yes - at the time of this posting I do have a position in this equity. By posting this I am by no means recommending this equity and am not front running for its performance. I have risked my own money and am accountable for the trade results.
	Image credits - stockcharts.com | barchart.com | foolcdn.com | yahoo.com | earningswhispers.com | and me :)
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