squiffy
11-03-2005, 01:08 AM
Bought 3000 shares of NOK. 1000 shares each on 8/16, 8/19, and 8/24 at an average price of about 15.71. Had about $47,132.97 invested.
Sold covered call for Oct. at strike 17.50 and made about 566.48.
Stock went up to 17.20 and I was feeling pretty good. Then on the earnings announcement price dropped to 16 and I "lost" back 3,000 of my paper gain.
Anyway, NOK recovered and went up to about 17.19 today. I sold a bit too early at 17.10. And in hindsight probably shouldn't have sold at all. I should probably have sold another call for Nov. or just held for 17.50 or so.
Anyway, total profit was 4,153.89 on the 3,000 shares, plus 566.58 for the call, so total profit of $4,720.37 in my tax-deferred IRA account.
Total invested was 47,132.97 so that is about 10% return over say 2.5 months, or roughly 4% per month.
If you could keep that up for 12 months, which you probably cannot, it would be about 48% per year.
Anyway way, sometimes stock investments can turn out ok.
Am now looking at PFE, AVP, BUD, and WMT. WMT was mentioned by one of the posters here.
Bought about a 1000 shares of PFE at 21.49 a day or so ago.
Going back to NOK, if I had known it was going to collapse from 17.20 to 16, I would have been much better off selling at 17.20 and rebuying at 16. But you cannot usually predict those drops.
I should have just bought more stock at 16, but I was worried it might keep dropping. Oh, well.
Sold covered call for Oct. at strike 17.50 and made about 566.48.
Stock went up to 17.20 and I was feeling pretty good. Then on the earnings announcement price dropped to 16 and I "lost" back 3,000 of my paper gain.
Anyway, NOK recovered and went up to about 17.19 today. I sold a bit too early at 17.10. And in hindsight probably shouldn't have sold at all. I should probably have sold another call for Nov. or just held for 17.50 or so.
Anyway, total profit was 4,153.89 on the 3,000 shares, plus 566.58 for the call, so total profit of $4,720.37 in my tax-deferred IRA account.
Total invested was 47,132.97 so that is about 10% return over say 2.5 months, or roughly 4% per month.
If you could keep that up for 12 months, which you probably cannot, it would be about 48% per year.
Anyway way, sometimes stock investments can turn out ok.
Am now looking at PFE, AVP, BUD, and WMT. WMT was mentioned by one of the posters here.
Bought about a 1000 shares of PFE at 21.49 a day or so ago.
Going back to NOK, if I had known it was going to collapse from 17.20 to 16, I would have been much better off selling at 17.20 and rebuying at 16. But you cannot usually predict those drops.
I should have just bought more stock at 16, but I was worried it might keep dropping. Oh, well.