Options Trade – XLE and MRK

Very busy Friday, here is a recap of the trades I made:

• I let the 10 Feb Put Contracts (50 Strike) for MRK expire.  I am annoyed I did not pick up the stock, need more exposure to Healthcare.  I can console myself with the $980.00 profit from the trade.
• I bought back the 10 Feb Call Contracts (57 Strike) for XLE for $50.00 – so I could sell 10 new Mar Call Contracts (59 Strike). Profit from the Feb contracts:  $1,050.00.  New premium collected for the Mar contracts: $1,060.00.

*Profit/Loss calculations exclude transaction costs.

At this point, my cost basis for XLE is under $52 dollars a share – currently trading at $56.81 – so that would represent a profit of almost $5,000.00 is I sold on Monday.  I will not be doing that – want to be holding XLE when the Oil Market finally turns.

Yuengling Time!