Even though I have not posted my trade recap on Gigamedia GIGM yet, it was called away last week and I have written another covered call on it.
When the earnings report came out yesterday, the stock fell from near $16 to below $15. I entered a net debit covered call trade for the July $15 call at $13.75. I was actually filled at a Net debit of$13.59. Buying the stock for $14.54 and selling the call for $.95. The option premium gives me an uncalled return of 5.8% for 61 days.
I listened to the Gigamedia conference call and to me this company is doing really well. The stock follows a pattern I have seen with some small cap/high volatility stocks: They run up briskly before the earnings release, then drop no matter how good the news.