Been holding this trade for a few weeks now. This is my first post related to options trading. I'm using the lines to show a visual of how selling a Call has helped create a range of profitability and risk management.
GREEN LINE - Max Profit - This green line is in relation to the original share price entry point, the Call strike price, plus any premium...
My IRA is a basic Boglehead setup, along with some little tweaks. Primarily consisting of SPY, TLT, EFA, and IYR covered calls, it's about as Plain Jane as one can get, although I've got some acquisition-oriented short puts hanging out there in XLU, XLP, and HYG.
As any covered caller or short putter knows, these setups are going to be long delta all the...
Bought 100 RCL for 118.25
Ex-Dividend is tomorrow and dividend is .70, so If I have the stock by tomorrow I will receive the dividend.
To enhance the trade I also Sold the 115/119 Strangle for an additional $1.1 with 3 days to expiration (That's how long I will be in this trade)
Max win would be $185 for the covered strangle plus $70 for the dividend = $255
My...
This covered call play in HPQ is partially an earnings play as well as longer term investment into October.
HPQ reports earnings tomorrow after the bell, and currently has an inflated IV rank of 69%, IV 32.9%
At the moment, the expected move is +/- 0.9 or 4.7%. Most of the previous 8 earnings reports the stock moved a wider range than this. (Half gaining and...
With covered calls, I look for cheap underlyings with high implied volatility rank/high implied volatility and setups that will produce at least a 10% return if called away at the short call strike.
WFT fits the bill, with a rank of 72, an implied of 84, and a 13.06% return if called away at the nearest out of the money strike.
Here's the setup:
Buy 100 shares...
The idea here isn't very difficult to understand. DAL has made a run up from $35.51 on August 8th, where we saw a bounce off the 150EMA, a personal favorite area to get long for me, especially looking at the weekly chart for this. Anyways, from the top down:
1) Bullish RSI Holding 60 Support
2) Established Uptrend - Long Term
3) Bounce off 150 EMA
4) Long $4.46...
IF A COMPANY HAS CONTINUED GROWTH IN A CHANNEL WITH FLAWLESS STRENGTH AND A NICHE MARKET FOR A PRODUCT USED AS NECESSITY IN AN ECONOMY STRUGGLING TO FIND PRODUCTION YET PRODUCE OIL AND GAS WHICH IN TURN GASOLINE RISING AT THE PUMP AND CORN BASED ETHANOL OUR ATTEMPT TO GO GREEN IN A DIRTY BLACK FOSSIL FUEL LOL. THE GOVERNMENT MANDATES A PERCENTAGE IN EACH GALLON...
