Friday, June 15, 2012

Roll Up and Out -- The Hartford Financial Services Group

Today was Jun2012 options expiration. With less than an hour before the market close, the existing covered calls position was rolled up and out to a Jul2012 covered calls position.

The advantage of waiting until this afternoon to roll this position was to extract almost all of the extrinsic value from the short options before establishing the position for the next expiration month.

The detailed transactions history for this covered calls position in The Hartford Financial Services Group (Symbol HIG) is shown below.  The overall return-on-investment result for this HIG covered calls position will be calculated and presented on this blog when the position is closed out.

1. The Hartford Financial Services Group (HIG) -- Continuation Transactions
The transactions history is as follows:
03/23/2012 Sold 3 Hartford Financial Services Group (HIG) Apr2012 $21.00 Put Options @ $.67
Note: the price of HIG was $21.29 today when these Puts were sold.
04/22/2012 HIG Apr2012 Puts expired.
300 shares HIG purchased at $21.00 per share.
04/25/2012 Sold 3 HIG May2012 $21.00 Calls at $.65
Note: the price of HIG was $20.72 when these Calls were sold.
05/19/2012 HIG May2012 Call options expired.
06/04/2012 Sold 3 HIG Jun2012 $16.00 Calls at $.69
06/15/2012 Bought-to-Close 3 HIG Jun2012 $16.00 Calls at $.88
Note: the price of HIG was $16.87 when these options were bought back.
06/15/2012 Sold 3 HIG Jul2012 $18.00 Calls at $.38
Note: the price of HIG was $16.99 when these options were sold.

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