70% of my Pfizer holdings will be called away this afternoon
I currently have 522 long options of the 13's for Jan. 2014 in my regular account and my covered calls include 265 of the Feb. 26's and 90 of the Mar. 25's. Since I will certainly be exercised on those before tomorrow's ex-dividend, I will myself be exercising on 355 of the 522 long LEAPS calls.
The 13 points on the 265 Feb. 26's will fetch $342,480 after commissions and the 12 points on the 90 Mar. 25's will put an additional $107,980 into the account after commissions.
I had 67 December 25-strike covered calls that expired worthless and I was waiting for a rally to sell further-out options. I just did that this morning - selling the Apr. 27's for $89 apiece or $5,920 after commissions.
I am left with 167 long LEAPS 13-strike calls expiring in Jan. 2014 with covered calls as follows:
067 of the Apr. 27's
100 of the 27's expiring in Jan. 2014
I am also going to get called away on the 46 Feb. 26-strike covered calls in my IRA account against my long position - 46 of the 13-strikes for Jan. 2014. Accordingly, I am exercising my long calls and the 13 net points on 46 contracts will put $59,780 into the IRA after commissions.
I do expect Pfizer to start pulling back - especially with the RSI now back into nosebleed territory at a 72 reading. I'll likely re-establish positions in Pfizer once i think that the pullback has run its course.
I'm not one to chase stocks and with Pfizer temporarily getting away from me on the upside, there was nothing sensible to do other than to temporarily exit the positions.