Option Assignment – The Jean Coutu Group

Another position exits my portfolio. Earlier in the month, I had written a covered call option on The Jean Coutu Group (PJC.A.TO). The option expired on Friday Jul 15, 2016 with the stock ending up in-the-money, which resulted in the stock getting called away. I owned PJC.A.TO for approximately two and a half years and the company has traded sideways during the duration, although it reached a high of mid-$20s about a year ago.

I still believe in the long term growth of PJC and sad to see this stock get called away, but its a risk you take with options trading. Making a decent profit and staying in cash during these volatile times isn’t so bad I suppose…so I’m not complaining.

Overall gains (including dividends and option premiums): 17.88%

4 thoughts on “Option Assignment – The Jean Coutu Group

  1. Nice move Sabeel!

    No one ever went broke booking profits. In general, selling is never going to be as popular as buying, but that doesn’t mean that it’s the wrong thing to do. The markets are trading at extremes and record highs, so I think you’re just being prudent and cognizant of where we are in the market cycle.

    Markets go up, and markets go down… It’s been so long since we went down that many folks have forgotten that straight line perpetual growth is not sustainable.

    Take care!

    • Thats what we tend to forget, dont we? That theres no infinite upside potential and markets will eventually go down — either slowly or violently. Going to cash is where I am more comfortable with at the moment and playing the waiting game.
      I was reading an article somewhere that said that most of the younglings on Wall St have never been thru a bubble/crash cycle. They have never experienced what we went through a decade ago….and the amount of optimism is insanely high. Just a window into people’s mind on what things are like these days 🙂

      Thanks for stopping by and the continued support

      R2R

  2. Nice job Sabeel. You’re doing it right. Sell options on those stocks you don’t mind owning or selling. I have a few stocks with upcoming expiration dates that may get called away if the market stays hot. This is fine with me. I’ll make a profit and sell some puts.

    • Thanks IH.
      PJC is a good company, but I am ok selling it as I think there are better ones out there to invest in. Also, I dont mind sitting on cash these days.

      Thanks for stopping by and commenting
      R2R

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