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Covered Call on CVS, positive contribution from stock, option premiums and dividend….Unrealized profit of $1,098, 5.1% return in 49 days or 37.8% annualized.

It doesn’t happen often when a CC position is profitable on the stock, option premiums and dividends. Our position in CVS is currently positive with all three. Early on the stock dropped (blue line) so we were losing money on the stock and making money on the options (red line). Recently the stock has run … Continue reading Covered Call on CVS, positive contribution from stock, option premiums and dividend….Unrealized profit of $1,098, 5.1% return in 49 days or 37.8% annualized.

Lumber prices are ridiculous….CC on WY (Weyhauser) ….can we make enough on the CC to offset some of inflated lumber prices on reno?

Lumber prices have gone crazy. Rather than complain about the prices we decided to establish a CC on one of the top lumber companies, WY. This “approach” has worked in the past with Peleton. We wanted to buy a Peleton so we set up a CC and paid for the bicycle 50x over. I don’t … Continue reading Lumber prices are ridiculous….CC on WY (Weyhauser) ….can we make enough on the CC to offset some of inflated lumber prices on reno?

NIO Covered Call “hanging in” despite price drop, VIAC CC not working so well

NIO CC Strategy established 9/16/20 has been able to hold onto most of the profits (black line) despite the erosion in stock profits (blue line). NIO call premiums have remained at a reasonable level due to the volatility. As the stock profits declined the option profits (orange line) has been offsetting. Overall the position is … Continue reading NIO Covered Call “hanging in” despite price drop, VIAC CC not working so well

Update on ABT Covered Call….Earnings Announcement Today….Could be opportunity to add to position

Abbott is a good covered call candidate. In our IB account we purchased 100 shares on 4/1/21 and sold the May $120 Call option. We rolled the option to May $125 (if the stock drops today we might regret the roll up!). Our unrealized return on capital for the position is 2.4% in 18 days … Continue reading Update on ABT Covered Call….Earnings Announcement Today….Could be opportunity to add to position

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