What prompted us to sell calls as a blanket over each and every stock while the S+P was up this morning was what we would call a misread by the geniuses above that drive the markets.
The state number is out and it is not pretty fro a while almost every time you hear the word unemployment within a matter of days your accounts will be worth less if you do not adjust.
We adjusted and asked you to as well We own X as low as 35.5 We sold X july 37 call at 3.6
We offered more at 4 thinking we could buy more stock we like that particular buy write.
This is a decent amount of downside protection and on a pull back I will have the option to buy more which is exactly what I hope to do I do not believe we will get a complete correction but we will definitely have our share of down days so on a 10-15% correction we buy and we sell calls on rally's on the way up for sweet juicy prices. Options vol is up and you can take in a fair amount of premium with this method . For another example We bought BAC between 11.55-12
and waited until 13.75 sold 13 and 14 calls we may assigned on those calls but at 13 we sold at the equivalent of 14.75 and we might still keep the stock cool huh?
and drop an email chrgr06@yahoo.com to schedule
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