One of my holdings, ENCY, got hammered today. It had been cruising along at $5.80 +/- for a week or so, then at 2:00 today they had a conference call and released the information that the FDA was requesting some additional information on their hopefully, maybe, someday, soon to be approved hypertension drug. The stock immediately fell off of a 20%+ cliff, closing the day at $4.49.
Good news: I had sold the Jan5 calls on 11/16 at $1.60 and bought them back today for $0.15, a pretty nice gain.
Bad news (maybe): I bought the shares for $5.92 on 11/16, so I am running about even on the overall covered call trade. However, I still own the stock, so I gain on any increases in the stock price.
I believe that the market over reacted to the news today, and the stock should rise again. I will hold onto the shares for a few days and see what develops. I would like to sell at $5.00 or better to realize my original projected profit.