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New Approach to Entering a CC Position, Selling Naked Put, getting Assigned then selling Calls

On 11/16 we took a different approach to establishing a new covered call position on Smile Direct Club (SDC). The stock was beaten down after a good earnings call. Rather than buy the shares and sell call options we wrote Nov 20 $9.50 Puts for a credit of $.49. The stock went up and on … Continue reading New Approach to Entering a CC Position, Selling Naked Put, getting Assigned then selling Calls

Summary of account activity Wk ending 10/23 – risk and margin reduction via diagonal roll downs

Majority of trades on Friday were diagonal roll downs. AMZN, DOCU, PTON, BYND all had significant drops. DXCM had a good week which helped offset losses in other stocks. We rolled many of strike prices down to ITM/ATM strikes due to uncertainty heading into the election. The market is forecasting high volatility immediately after the … Continue reading Summary of account activity Wk ending 10/23 – risk and margin reduction via diagonal roll downs

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.

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