New Month of trading

Last Month was pretty good for my trading with several stocks going nuts on the upside and thus maximizing my potential profits. Also, since I got called out I started the new month of trading ALL in cash. Hmm, where to go from here.

Since I like higher premium stocks I constantly am screening stocks with volitility and of course several other parameters to get the best possible return (without risking my money unwisely).

Lately the Pharm stocks have had the volitility I like and in the range of trading that is desireable to me also. My latest venture is RIGL. This stock trades in the mid $11 range with high premium options. My current CC holdings include: FAS, RIGL and TIVO - for now. I have these in various accounts.

Options Expiration

Options expiration is 6/20 but effective in the market today (6/19). For many financial traders selling covered calls is not a good method because they feel that you lose when the stock goes up and you get called out. However, looking at my last post where I reveal that I'm up 165% in year 2009, this only shows that the covered call method (with my own proprietary tweeking) works great EVEN when you get called out. In fact, I prefer it. Getting called out means that you get the cash, maybe a little bit on the stock increase as well and obviously you aren't stuck with a stock that has tanked in value and with your money.

I'm getting called out today - and that means I'll have cash to start on Monday...ALL OVER AGAIN.

Up 165% in 2009

It's been a really good trading year thus far for me and I plan on keeping it going. My trading strategy is filled with safeguards and protecting the downside while taking in income on a monthly basis.

Options expiration is set for June 20th (19th trading day) and I like to sell naked puts on the last week of options X. On Monday I sold Naked Puts ($7.50) strike for SVNT for $0.95. The stock is trading in the lower to mid $9's and this just seemed like a great play. If the stock is put to me at $7.50, my adjusted cost basis is $6.55 per share. So the stock has to drop almost $3/share this week before expiration for me to be under water.

Current CC positions: FAS, MBI, SVNT.
Current NK Put: SVNT ($7.50).

I'm writing a program to calculate at what point I need to buy long Puts as a protection device for my covered call plays. More on that later.
Happy Trading!