Sold FLS for $107.50, as it was nearing fair value. My profit on this position was effectively decreased, since I chose to buy back calls I'd written on it.
I originally bought FLS for $70, via puts (which paid $5.90) and wrote calls (which paid $4.20). Then I bought back the calls for $25 (ow). Now, I've sold for $107.50. My profit is:
$107.50 + $5.90 + $4.20 - $70 - $25 = $22.60 per share.
That's 32% of the original purchase price. Still, if I had bought FLS outright at $70, and had not written calls at all, my return would have been over 50%. Further, if I had let the calls be exercised, instead of buying them back, I would have made a 29% profit. Was the extra 3% worth the effort? If I was a professional money manager, competing with other professional money managers, sure. Since I'm a "hobbyist" I'm concerned with absolute rather than relative returns, and I think it wasn't worth the trouble.
