The Blog Returns…..
We are finally ending our long hiatus from the Deeppocketoptions blog. Please read along and send your comments.
Let’s start by updating GE. At last look, almost 7 months ago, GE was around 23.22 – it is now trading at 24.20. A holder of 100 shares GE would have made about one dollar but ONLY if that trader was smart enough to buy at 23.20 in February, hold on to it, and then sell it today. Along the way, the holder of those 100 shares would have seen them drop to 21.11 in April, and again would have had to make the right decision to hold on.
That is a lot of decisions that must be correct, all at the proper time, to make a little money.
Our option position is still long 500 shares and short 3 Oct 24 calls. We currently have an order in place to sell another call at 55 cents. Today, our P/L on GE for the year is $612, so roughly the same as a buy and hold position with perfect timing.
This is a great illustration of one of the benefits of using options as part of a portfolio. The options make money consistently over time, and there is absolutely no need to attempt to pick perfect entry and exit points. Our position is making a couple of dollars a day and we have the ability to sell more calls. We also expect to collect the dividend later this week.
Welcome back to the DeepPocketOptions daily update. More on GE tomorrow.