Real Deal – Apr 2016 #1 (USO – Rollover Covered Call Cont)

Let’s continue this interesting trade! I did a roll on Friday. You can refer to Original Trade here.

Screen Shot 2016-04-17 at 1.41.26 PM

After I purchased USO underlying on 15 Jan 2016 ($8.805 per share), I did multiple short calls (covered call strategy) to reduce my cost base.

(a) 15 Jan 16 – STO USO Call 9.5 Feb16 @ 0.33

(b) 17 Feb 16 – BTC USO Call 9.5 Feb16 @ 0.02
(c) 17 Feb 16 – STO USO Call 9 Mar16 @ 0.42

(d) 19 Mar 16 – BTC USO Call 9 Mar16 @ 1.47
(e) 19 Mar 16 – STO USO Call 9 Apr16 @1.55

(f) 16 Apr 16 – BTC USO Call 9 Apr16 @ 1.23
(g) 16 Apr 16 – STO USO Call 9 May16 @1.41

Terminology: STO – Sell To Open and BTO – Buy To Close

As of 16 Apr 2016, USO per share after netting off the option premium captured is $7.815 per share ($8.805-$0.33+$0.02-$0.42+$1.47-$1.55+$1.23-$1.41). The cost base on USO is further reduced!

 

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