Alan answers a question posed by Andy, who asks:
In Ask Alan video #3, BWLD was bought at $82.40 and the $80.00 call was sold for $4.40. Five days before expiration, BWLD was at $84.50 and the cost to buy back the option was $4.80. What should I use as the cost-basis if I did buy back the option $82.40 or $80.00?
Thanks for your help.
——— It’s the 2nd Wednesday of the month. Time for another original episode of Ask Alan. AA#175, “What is My Cost Basis?” If you want more “Ask Alan” videos, you can! Become a premium member today, and tune in to the educational power of the complete library!
- For those new to Alan’s system of Covered Call Writing, be sure to take the Free Beginners Corner Series
- Free Training Videos Archive
- Ask Alan Video Q & A Archive
- Subscribe to our YouTube Channel
To enter your questions to “Ask Alan”, fill out the form on the contact page. Be sure to begin your message with “ASK ALAN”