Bought to close XBI 9/16 expiration $63 strike calls

action

Bought 2 contracts of XBI 9/16 63 strike calls at $.97. This closes the short position originally entered on 8/24 at $1.72. Total return after commission was $131.10. Return per share after commission was 66¢.

rationale

I really don’t like the XBI vehicle I am using to gain exposure to the biotech sector. I should have gone with IBB vehicle, instead, as it offers weekly options expirations. I bought back the calls, expecting that the ETF would appreciate and that I would be able to close that leg of the covered call at an additional profit. Not yet, though: XBI fell back some more, before the close. So I continue to hold it. I am not too worried, but obviously this whole trade was poorly designed and executed.

August 30, 2016 at 5:13pm · XBI · buy to close · options


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