Monday, September 12, 2005
Quick Update - EBAY
So, EBAY moved to the mid 39's before pulling back. At 39.30, I couldn't resist the September 40 call premiums, so I sold enough calls to cover my entire position for $0.30 a contract. Hard not to take advantage of over three-quarters percent return for 4 trading days on a contract that is almost 2% out of the money. This effectively brings the cost basis to 38.45 with a cap at 40 over the remainder of this week. So, anyway I now see that EBAY closed below 39, and that the calls I sold are now worth only $0.15 apiece.