Latest Stock Sale: 100 Shares of ET Called Away

Updated: 9 April, 2020 seen 50

On April 3, 2020, 100 shares of ET I hold were called away.

This comes just shortly I sold the following call ratio back spread back on ET back on March 25, 2020

  • Sold 1 call ET 5 @ 0.32
  • Bought 2 calls ET 6 @ 0.09

My hope was that ET will either stay below strike price 5 or will explode and go above 6, and I will start earning then. In the end, ET ended trading at $5.47, and my shares were called away.

ET share price on April 3, 2020

ET share price on April 3, 2020

I also sold a put ratio back spreads with the same expiry, which expired worthless

  • Sold 1 put ET 5 @ 0.50
  • Bought 2 puts ET @ 0.09

As from the call back spreads I have collected $6.80 (after commissions) and from the put back spreads $10.80 (after commissions), my theoretical loss here is $29.4 (500-547+6.80+10.80) if I would decide to buy back 100 shares of ET at 5.47.

My break-even point though would be buying back at $5.29

Which I actually plan to do once the market will open again on Monday (April 6).

As I'm suffering a lot lately in the stock market, my positions have been force liquidated, I just cannot afford to sit and wait before market will bounce back (as many my shares have been sold to cover loses) I now own 0 shares of ET and have lost -$1,612 with this stock. To leave theoretically some space for recovery I  ahve to buy back these shares, and I plan to buy at least 120 shares with next trading session.

Stock Recovery table

Stock Recovery table

In the case of ET, I have to recover at least 200 shares to be in the levels of the pre-market crash. Taking 120 shares Monday I will decrease this to -80