Facebook – Deep ITM Call Option Expiring June 18, 2021 – Day 5

It’s the first Friday expiration and it’s been excellent for selling premium – not so good for holding a deep ITM Call.

Long Stock

Had I held 100 shares of long stock, I would have lost $402 (Purchase Price: $323.10 – Closing Price: $319.08 = 4.02 x 100 shares = <$402>)

Loss on 85 Delta Call

I bought the 85 Delta Call for $35.50 and it is currently worth $31.87 or a loss of <$363.20>.

Gain Selling Premium

Here’s where I did pretty good. I originally sold a short call for $1.04. The stock dropped and closed that option for $0.11 then sold another option for $0.76. Then I closed that option and sold an option expiring May 14 for $1.21 that was worth $1.02 at close of business on Friday. This made my profit on the shorts $188.00

If you take the loss of $363.20 on the long option and add the gain of $188,00a that came from selling premium, I netted a loss of <-175.20>. Half of the loss I would have hand holding long stock.

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