December options expiration: AAUKY and BMO
This past Friday was December options expiration and I had two options positions expiring – one a short put position and the other a covered call:
- Anglo American plc [[AAUKY]] – The December 12.5-strike covered calls I sold against my long position in AAUKY on 7/10/09 as a way to exit the position at breakeven expired in-the-money and my shares were called away.
- Bank of Montreal [[BMO]] – The December 40-strike put options I sold against BMO on 9/24/09 expired out-of-the-money for a 3-month net return of about 2%.*
* As always, the return on cash-secured put sales was based on the premium received from the sale of the options (minus commissions) against the unmargined capital set aside to pay for their possible assignment (i.e., my being put the shares of the stock).
