Re: Options strategy on COP
I have some positions that will be called this month. I'm going to buy more COP, but haven't exactly figured out which way to approach it. The when-issued COP stub (without Phillips 66) is at 55.82 and Phillips 66 when-issued is at 36.55. We get 1 PSX for every 2 COP so 55.82 + 1/2 of 36.55 (18.28) = 74.10. I'm not sure if I would gain anyhting buying COP Monday, waiting for 5/1 to sell the PSX, then selling a call off the stub OR just waiting for 5/1 to buy the stub, then sell a call off of it. 1/2 of my COP is already optioned out. My current preference is to wait until 5/1 to see what the COP stub will be trading at. Another thing to do would be buy 200 COP Monday, keep the 100 PSX which will begin trading 5/1, then sell options on both. And I thought retirement would be dull!