Would now be worth $11 Million if I'd held it! (BIG sigh)
I owned 1,000 shares of Apple back in '03 or '04. On a Thursday, Apple was $59.50, and the one day expiration Friday $60 call was selling for $1.00. So I sold 10 covered call contracts, representing the right to buy my 1,000 shares of Apple at $60, and hoped Apple went down on Friday so the calls would expire worthless and I could pocket the $1,000 premium. Instead Apple went up on Friday, my calls got exercised and I sold my 1,000 share of Apple for $60, and never bought them back. I'm not exactly sure, but I'll bet 1,000 share of '03 Apple would be worth a cool million today. Oh well!
I've pretty much stopped selling covered calls, I don't think any of my covered call trades have ever worked out well for me. |
