GE announced it’s Q4 2020 earnings prior to today’s open. While a $0.08 earning per share was just shy of expectations, the real news was FCF and forward guidance. This lead to 10% gain just after the opening to just over $12.
This was the news I’d hoped for when I made my GE 3/19 and 6/18 calls for $12.
Then the remainder of the day eroded the initial gains, closing at $11.29. With little more than a month and half remaining to 3/19 expiry, those calls are going to start losing value quickly. I haven’t yet decided how to exit my position. I’ll need to do some reading. Currently, I’m down about 17% on the position: $212 value on $255.64 cb.
VLDR has mostly traded sideways the last couple of weeks, around $23 to $24. Today, they announced a new sales agreement with shares responding up 11% to $25.15. This is all still below my strike of $30 expiring Feb 19th.
Once I figure out what to do with my GE 3/19 calls, I document that here. Otherwise, my next date to watch is 2/19 for expiration of VLDR CC.
Unrelated, a friend has started messing with his own options, learning with me. His first was to write CC on HEXO, a cannabis company. Timing being unpredictable and a bitch, share price crashed through his strike of $5.50 to more than $7. The terrible feeling of missing out on gains above his strike was frustrating, even though logically he maximized his return for the trade. Doesn’t change the emotions though and stands as a good reminder for me.