Here are my holdings as of August 9th, 2014:
|Description||Symbol||Quantity||Date Acquired||Cost Basis||Market Value|
|AFL Aug 16 2014 65.00 Call||AFL Call||-1||07/18/14||-32.34||-1.00|
Looking at the table, do you notice what has changed from last week?
Earnings for Nelnet was announced this past week and it beat estimates by $0.07. The stock price rallied soon after this news and it closed at $43.92 on Friday, August 9th, 2014. I sold all 121 shares in my trading account for $43.22 per share with a net proceeds of $5,224.53. My realized gain was $253.74.
With a P/E of around 6.69, I still like the long term prospect of NNI. I do hold shares of NNI in my investment account, but I think this rally is a good time for me to part with my shares in my trading account.
You might say that I sold too early, but given the volatile nature of the stock market this past couple weeks, I am satisfied that I made this trade. Having some cash in my trading account give me more trading options. I might look into selling a put next week. Stay tune.
AFL remained pretty much the same. It closed at $59.19 on Friday. I don’t expect the stock price to go much lower. Again I expect the $65.00 August 16th call to expire without me having to sell my AFL shares.
My real bottom line on 8/9/2014: $16,534.48