As I posted yesterday, I was going to take a trade and allocate the profit from that trade as a donation to an Autism Charity. Well, I had one position that I closed with a profit yesterday. The trade was a call option (Apr $230) that I purchased for $1840 for First Solar Inc. (FSLR). I very foolishly had a put option from the same company that was pretty much a waste, unless something monumentally bad happens with the stock price, so I was feeling bullish about the stock.
A Call Option is like a coupon. It said that I’ll buy 100 shares of FLSR at $230 sometime for the option expires, in this case April. What’s nice is that I can control 100 shares of stock for $1840 as opposed to $23,000 if I bought it out right.
Looking at the pretty graph, you can see the first green oval is when I bought the option, 3/28. 3 Trading days later, I decided that I wanted to sell it.
- FSLR stock price can move a lot in one day and I didn’t want to lose any money
- Since I don’t have enough money in my account, I have to take small gains until I can build enough to do all the trades that I would like to do.
- I wanted to have a winning trade for World Autism Day, like I had promised and this was my only position that was doing well.
So, I put a stop loss order on it and went on to do something else. I then noticed that the option had closed, so I checked out what happened. The Option sold for $2320. So that’s $480 minus the $3 commission to make the trade and BOOM, that’s $477.00 to go to an Autism Charity. But which one?
I decided that I am going to donate it to the Breakthough Corporation, why?
- They are fresh in my mind since I will be running their 5k race on April 19th
- They deal with Asperger’s for adults, something which really needs some support. There is support for children, but nothing about those (like myself) that are all grown up older being diagnosed with Asperger’s
- They desperately need the funds to get established in the area
- Did I mention they host a road race?
So now I need to send the check in.