Covered call cover

My covered calls on Thornburg Mortgage and Gigamedia have good well into the money. To maintain my positions in the stocks I have bought calls on these stocks.

For Thornburg I think the stock should have a significant rise in the next couple of weeks. I have previously sold the Sept $12.50 call. Last week I purchased 2 October $12.50 calls. I have sold one for a profit and the other will replace the stock if it is called away next week.

For Gigamedia I sold the Oct $15 call when it was trading in the $13 range. It is now above the strike price so I bought the Oct $12.50 call. The $15 call has a significantly higher time premium, so I lock in a $.50 profit and keep the stock if it closes above the $15 strike.

One Response to “Covered call cover”

  1. mounddweller Says:

    Tim,

    Are you still trading covered calls? If so, please check out my blog, http://troysmoneytree.wordpress.com.

    I just started it this week. However, I’ve been trading CC and NP for a few years now. The blog is still a little rough around the edges as I’m still learning how to use the WordPress software.

    Regards,
    MD


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