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.

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3 Responses 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

  2. ian@stock-options-made-easy.com Says:

    Covered calls are a great idea.
    However, I only deal in option trading and never let my options reach expiration….I believe in the rule a little profit is better than a large loss.
    Best of luck!

  3. stockfordividend Says:

    Admirable recommendation! Recently, the company is becoming much skilled in offering premium quality covered calls services to their all the clients with plenty of convenience regarding other benefits. Today, we all are taking the advantages of such kind of firms who are dealing in this profession from a long term and have become perfect in this.


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