Been a while since I posted. I have the results of my July calls. And, thank heavens for the "Dummies" bit in the thread header, and the willingness of thread members to confess their "dumbiness" (g), so I can confess mine.
I sold Sebl July 45s for $2.80 and Gemstar July 40s in 2 separate packages, one for $2.10, the other for $2.15. Both were done early in the period.
The Sebl's were modestly successful. I sweated them in the week before earnings, as they wandered around the 45 line, just above and just below. So, on the Wednesday of earnings, when the price dropped, I bought them back for $.95 for a $1.85 net. OK, but it's clear I could have waited and let them expire. I grew a bit too worried about Tom Siebel's selling skills to be willing to go through the earnings report still holding them.
On the Gemstar 40s, I let the stock go. I debated, lightly, whether to rollover to August, but decided that Gemstar is likely to retreat back into the 30s and that's likely to happen once earnings are over. So I concluded I would take my medicine now, rather than rollover and take it later. I think, now, that was a mistake, one of my learners errors. I would have been better served to rollover, then rebuy when the price dipped.
So, one modest success, one reasonably serious mistake. We are now looking/hoping for Gemstar to retreat below 40.
John |
