ROLLING (IRA): TLT JAN 15TH 165 COVERED CALLS TO FEB 19TH 163
... for a 1.00/contract credit.
Notes: A continuation of my TLT covered calls. (See Post Below). Rolling out at >50% max to the strike paying around 1% of the strike price, which is the 163 in February, currently valued at 1.66. I'm fine with being called away, since my last acquisition was around 110, and I think the buying power could be better utilized in something with higher implied volatility (30 day is currently 14.9% here). By the same token, that 1.66 for the 163 short call is 7.67 annualized or 4.9% as a function of stock price. That isn't hugely sexy, but when you add that to TLT's current yield of 1.56%, I could think of worse places to park my money for a little bit while I ramp up other positions in the new year.
Notes: A continuation of my TLT covered calls. (See Post Below). Rolling out at >50% max to the strike paying around 1% of the strike price, which is the 163 in February, currently valued at 1.66. I'm fine with being called away, since my last acquisition was around 110, and I think the buying power could be better utilized in something with higher implied volatility (30 day is currently 14.9% here). By the same token, that 1.66 for the 163 short call is 7.67 annualized or 4.9% as a function of stock price. That isn't hugely sexy, but when you add that to TLT's current yield of 1.56%, I could think of worse places to park my money for a little bit while I ramp up other positions in the new year.
Trade active:
With >45 DTE left in February, rolling the 163's down to the 160's for a .59/contract credit. I'm fine with being called away, so I can be quite aggressive if I want to here.
Trade active:
With only .39 left in the 160 calls, rolling from the February 160's to the March 156's for a 1.39/contract credit. Yield remains stinky at 1.609%, but I don't have a comparable yielder in which to park buying power yet. I continue to target HYG, but have yet to be assigned a single share.
Trade active:
With the March 156's at 50% max and 38 DTE, rolling them out to the April 155's (66 DTE) for a .78/contract credit. Will continue to roll at 50% max, either intraexpiry if there are > 45 DTE or for duration if there are <45 DTE (such as here).
Trade active:
Rolling my calls down intraexpiry from the April 155's to the April 150's for a .83/contract credit.
Trade active:
Although we're at 45 DTE here and I can roll down intraexpiry, rolling out instead to keep the short calls clear of current price action with all the recent gyrations in yield. Rolling to the May 21st 148's for a .91/contract credit. Total credits collected of 5.50 vs. May 148 call value of 1.65 and current annualized dividend of 2.471. Short call premium collected since December is more than twice the annualized dividend, and we're not even through the first quarter yet. Naturally, share price has declined dramatically since the double top around 170, but this setup has always been about "cash flow" via dividends and short call premium versus getting neurotic about where share prices are at.
