Friday, July 31, 2009

Still Covered Calls

This years trading has been going very well. My trading that is. There is proof that you can make money in any market with a disciplined approached and with proper money management. Also, the covered call trading strategy that I use is a big factor as well.

Currently I'm in the following trades:
SPWRA - Long at 24.04
Sold the Aug $24 calls (Stock flew up to $32 - I wasn't covered on all my shares so I sold them at 32 for a huge profit.)

FUQI - Long at $21.87
Sold the 21 Aug Calls
Sold the 22.50 Aug Calls
** Split the calls to different strikes. This way you hold your risk down, while allowing some shares to run up a few points if possible.

SQNM - Long around 5.76 and 5.86
Sold the $6 Aug calls

BMI - Long at 40 (originally purchased via naked puts reducing CBasis to 38. Then sold the Aug 40's and further reduced the CB to $36.

Now I will sit tight and wait for options expiration Aug 22.

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