Just did my first Covered Call with Comsec. I wanted to ditch my BHP shares and thought I'd offer $0.295 for a March 2010 call ($43.00 execute) to get a quick buyer. So the trade was bought on the 2/3/2010. All seemed ok, BHP has risen a little which I don't mind. Selling them at $43 is still gaining me a 8k + profit.
Comsec sends out an email everyday which seems good but I noted that I seem to be owing them nearly $2,000? I have never used borrowed money for shares.
The screen from Comsec looks like this....
Date Description Debit Credit Balance Initial Margin Collateral Cover Excess/Shortage
01/03/2010 Brought Forward Balance 0.00 CR
02/03/2010 S 1 BHPDM @ 0.295000 $43.00 CALL OPTION EXPIRING 25-Mar-2010 258.62 CR 258.62 CR
02/03/2010 Cash Margin on 02/03/2010 1,623.57 DR 1,364.95 DR 1,623.57 DR 0.00 CR 1,364.95 DR
03/03/2010 Cash Margin on 03/03/2010 391.73 DR 1,756.68 DR 2,015.30 DR 0.00 CR 1,756.68 DR
TOTAL: 2,015.30 DR 258.62 CR 1,756.68 DR
Can someone please advise me... what's this $1,623.57DR and $391.73DR. What am I being charged for?? I tried to ring them but it was too late in the day. Ill try again tomorrow. All i wanted to do was sell the 1000 shares I own at $43, collect my Premium (which hasnt come through yet) and trial Covered Call writing.
Thanks in advance guys!