Covered Call Trade

I did a conservative (for me) covered call today. Bought 100 shares of DYN at $9.72 and sold the April $10 call for $.20. This give a 1.0% return if uncalled or about 4% if called for a little over 2 weeks.

If uncalled I should be able to earn about 3% per month of option premium until the stock closes above $10.

TFSM has rallied about 4% since I sold it yesterday. Sometimes this stuff will make you crazy. However, I am trying to stick with a covered call strategy in this account.


2 Responses to “Covered Call Trade”

  1. Houyhnhnm Says:

    Do you follow eBay, or is the price too high to get a decent percentage on time premium? It’s been stopped at 34 twice and is now making a third try. Might be a good position to sell a 35 call.

  2. Tim Says:

    I am currently interested in stocks in the $8 to $15 price range. This allows me to diversify with the limited funds in the account I am using for this project.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: