Bought to close ENDP 6/24/16 expiration $15 strike calls


Bought 10 contracts of ENDP 6/24/16 15 strike calls at $0.08. This closes the short position originally entered on 6/21/16 at $0.65. Total return less commission was $539.10. Return per share after commission was $0.54


The original trade was described here. The stock was touching its 5 day moving average right at the close, yesterday. Following the Brexit vote last night, ENDP sold off very quickly this morning, dropping 4.5% by midday to slip below the strike price. Still, considering the gain on the short call vs. the loss on the stock, I am about breaking even on the covered call. Since the name continues to be volatile and at multi-year lows, I consider it attractive to continue to hold ENDP, to keep writing calls against it. So, I decided to buy back the call, in case I would want to short a call later in the day. Unfortunately, the opportunity for that second trade didn’t come, as there was no real recovery in the market.

June 24, 2016 at 2:46pm · ENDP · buy to close · options

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