Adjusting ABT Covered Call in reaction to announcement of good quarterly earnings and raised guidance…..and stock drops $2…..
Yesterday we adjusted our ABT covered call position based on the $2 drop following the earnings announcement. The earnings call was positive with the company communicating excellent results and increasing annual revenue and earnings guidance. So why the drop? Historically we have found opportunity when a stock we like announces good results and it drops…..usually … Continue reading Adjusting ABT Covered Call in reaction to announcement of good quarterly earnings and raised guidance…..and stock drops $2…..
Schwab Account Wk Ending 10/16 – Trades and Positions +$24,245 or 1% in the week.
All 14 positions in the account are profitable. Five (ILMN, LNC, MDT, MS, RGEN) are more profitable due to covered calls. The other 8 positions would have been more profitable just holding the stock (stock prices have moved up faster than planned in covered call strategy). On the weekend we had three positions assigned (ISRG, … Continue reading Schwab Account Wk Ending 10/16 – Trades and Positions +$24,245 or 1% in the week.
IB Account Wk Ending 10/16 – Trades and Positions – +$13,917 or 4.2% in the week
Good week for the account with a net gain of 4.2%. We didn’t add or eliminate any positions. Nice rebound by Dexcom (DXCM) helped with the performance. Six of the seven positions are profitable. PYPL remains our only negative position. PYPL stock had a good week…but we were short $195 calls so didn’t get to … Continue reading IB Account Wk Ending 10/16 – Trades and Positions – +$13,917 or 4.2% in the week
IB Account Holdings and Update, +$23,742 or 7.5% in last 30 Days
Our IB account continues to hit new highs…..despite my trepidation about remaining “all in” with the pending election and uncertainty about what may happen following the close of the polls. The recent market run up has driven profits from the stocks up….but increased losses on the options (we are short the options). Six of the … Continue reading IB Account Holdings and Update, +$23,742 or 7.5% in last 30 Days
New Covered Call on ATEC
Yesterday we established a new CC on ATEC, a medical device company in the ortho/spine space. The company pre-announced a great quarter with impressive revenue growth despite the negative impact Covid has had on ortho surgical procedures. Kyle Rose is an analyst I follow with Canaccord Genuity. Here is a clip from his article yesterday: … Continue reading New Covered Call on ATEC
Follow Up on STE Covered Call Strategy, Stock Price Run Up
STE stock has had a quick run up making our Oct 16 $170 Call deep “in the money” (reflected in blue line). For most of the time we have had the strategy in place the covered call strategy was outperforming just owning the stock (black line versus blue line). That changed this week making stock … Continue reading Follow Up on STE Covered Call Strategy, Stock Price Run Up
Is Smile Direct Club (SDC) a good candidate for Covered Calls?
We have had success with SDC in a covered call strategy over the past 172 days. We had the good fortune of buying shares of SDC at $4.50 and $4.67 in late March/early April when the price had dropped in response to the Covid pandemic. The strategy has generated profits of $206,322 generating an ROI … Continue reading Is Smile Direct Club (SDC) a good candidate for Covered Calls?
Crazy Market…somehow generating great ROI!
On Wednesday afternoon during a late lunch break (working outside at the cottage) I reviewed my covered call positions and decided to roll a few positions up based on the strength of the market. Seemed like a good idea at the time. Checking back at the end of the day and find the market tanked … Continue reading Crazy Market…somehow generating great ROI!
Peleton (PTON) Covered Call Strategy +$2,771 in 33 Days, ROI of 17.9% or 198% Annualized
On August 31 we initiated a covered call position in PTON with the purchase of 200 shares at $77.26 and sale of 2 Sep 4 $77.50 Calls for $3.03. Over the 33 days we have rolled the options five times in response to movements in the price of the stock or the options expiring. The … Continue reading Peleton (PTON) Covered Call Strategy +$2,771 in 33 Days, ROI of 17.9% or 198% Annualized
Goldman Sachs (GS) Covered Call Assigned, Profit of $455 in 44 Days, ROI .5% or 4% Annualized
On Friday we allowed our Oct 2 $195 options to expire resulting in the shares getting assigned. The chart below shows the profitability of the position over the 44 days. In early September the position profitability peaked at $3,385. After that the profitability of the position declined as GS stock moved down and reached a … Continue reading Goldman Sachs (GS) Covered Call Assigned, Profit of $455 in 44 Days, ROI .5% or 4% Annualized
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