I owned 20 Long Calls with McDermott Intl (MDR) and I just sold 5 of them.
Last week on 10/30 I bought 20 MDR 1/17/19 $1.50 Calls. I just noticed I forgot to report when I made this trade. However, it is listed on my “Active Trades” page. Doesn’t happen often but once in a while I slip up.
With the stock at $1.64 on 10/30 it was on the “Unusually Activity” list. I really don’t know much about the stock. It’s a low priced stock, there was a lot of activity, so I went against my rules and took a shot. I’m having a crazy good year so I got weak. Today the stock is down again and it’s at $1.02. I really should have went out a year or 2 with a LEAPS option.
I bought 20 of the Calls with a $1.50 premium and laid out $1300. Looking at the stock I see it’s at it’s all time low. Hopefully it’s hitting support and it come back up. I’m a little pessimistic about that, and this is an option expiring in January. I decided to start bailing out at a loss before Time Decay makes this option completely worthless. I sold 5 of the Calls at 20¢. I still own 15 and I’ll watch it closely to see how it works out.
10/30/19 – Buy to Open 5 MDR 1/17/19 $1.50 C @ $65¢ ($325)
11/8/19 – Sell to Close 5 MDR 1/17/19 $1.50 C @ 20¢ ($100)
Loss -$225
I posted that I bought 5 contracts but I bought 20. I’m still holding 15 Contracts. I just listed the 5 because I sold 5.
Successful trading,
Steve
The Options Coach