The post has over 100 comments referencing the ‘No one in my real life…..’ comments are probably applicable to most of the traders in this group…..sorry for not creating a direct link and suggesting you search for in on Reddit….but it is worth a few minutes of your time
Smile Direct Club has been a good candidate for writing covered calls against. The weekly option premiums are excellent. To date the combination is generating a return of 123% or 107% annualized. Stock price has dropped significantly from Jan ($14+) to Mar ($11). Option premiums have helped offset some of lost profit on the stock. Overall this remains one of our key positions.
Sort of frustrating to spend most of the trading time managing and experimenting with different trading strategies in my Schwab accounts and have the IB account that I don’t spend much time on outperform by a significant margin. I either need to improve my trading skills or not trade as much!
Gaining experience with IC, BuPS and DiagBuPS……learning on the fly…..so far so good….
AMZN stock price over the past 25 days is net down….allowing the short options to do what they are supposed to do in a covered call strategy. Three more months to get the stock gain to long term.
This is only the second or third Iron Condor I have traded…..based on Tastytrade recommendation.
I got tired of chasing BYND stock in a covered call strategy….too much daily movement….something a bit more conservative….
First time taking a position with home builders. Good dividend coming up on Feb 3. Plan is to hold and roll for a few months.
Tables/Graphs representing each of the positions over time. Good representation of where the profits are being generated.
Positions and Friday trades at bottom of post.
Not sure it was the right time to let the shares go…..but had to manage margin creep up do to “roll ups” on Friday.
I established a CC + Put Protection (*.98) strategy for SDC. SDC has moved up from $9.72 to $12.10. I rolled the short calls from $9.50 to $11 to $12. The Put was at $8.50 and it is now worth $0. Would you usually roll the Put up when the stock runs up as the appreciation is no longer protected or just let the stock get called (assuming it stays above $12) away and do a reset.
Thanks Option Iceman.
We have been tracking our REGN BuCS since it was established on Oct 12. It remains a challenge…..
STO ABT Oct 30 $111 Call Credit $1.31 to reestablish covered call yesterday
Sharing current covered call positions in IB account along with graphs showing the progression of the return on each position. Left money on the table as stock prices have run past our strike prices on almost every position.
We like to find young medical device companies with innovative technology that we can write covered calls against. ATEC looks promising. Great revenue growth and really nice margins.
Options are monthly….not ideal but they don’t take much work.
Short options have helped but hard to offset $50 drop in stock price.
NIO is looking like a good stock for CC strategy. Lots of volatility on the stock, good premiums on the options. 8.9% return in 29 days…..so far. Had 1,000 shares called away at $17.50 and replaced them and doubled down with 2,000 shares and covered with Sep 18 $18.
Defensive roll down to protect what has been a profitable trade over the past 123 days. $3200 was down to $2 offering minimal downside protection. Over the past two weeks I have rolled down from $3400 to $3300, $3200 and now $3000. Roll downs have helped ….much more fun rolling up!
Baxter had a nice jump in stock price the last couple of days closing at over $86 yesterday. We were short Aug 28 $83 and $83.50 calls. Plans were to roll the options up and out (diagonal) today and hope the upward momentum continued. Stock goes Exdiv today with a dividend of $.245 which we intended to capture. Made a mistake not rolling up to “out of the money” strike price yesterday and lost the dividend ($367) as a result.
We may replace the position today. Baxter doesn’t have the volatility (lower return on covered calls) but it pays a solid dividend and is a good core healthcare holding.
All the positions below are part of covered call strategies across three accounts. Assigned on a couple I wasn’t planning on. Just couldn’t get all the trades done. Internet at the cottage in Canada is functional….but not ideal.
Our Covered Call strategy on ABT was established with the purchase of 300 shares on May 26. Since that time we have added to the position with 300 shares on 6/25 and 400 on 8/21. Covered Call strategy on Abbott has performed well aided by an upward move in the stock. We have rolled the options 13 times and had two expirations. Abbott is attractive for CC Writing as it trades weekly options, potential for growth on the stock price and pays a dividend.
SDC stock dropped following the recent earnings call. SDC covered calls have generated significant profits in my Schwab accounts. The drop in price created an opportunity to establish new covered calls in IB account. SDC has an interesting business model (changing the paradigm in the orthodontics). Two members of our family have had positive experiences with using the system.
The covered call positions were established with the purchase of 1,000 shares on the 8/17 and another 1,000 shares on 8/18. On 8/17 we sold 10 Aug 21 $7.50 calls followed by selling 10 Aug 21 $8 calls.
We liked the potential VIAC represented (believe the idea came from Coveredcalladvisor.com)
- Weekly options
- Great dividend
- History of stock growth
- Good option premiums
We opened a CC position on Jun 4 with the goal of capturing the $.24 dividend (Jun 12) and the option premium. Stock quickly jumped up in price and then fell back below what we paid (blue line in chart below). After the stock price fell and our Jun 19 $24 call expired at $0 we didn’t sell additional options hoping for stock price to rebound. On Jul 14 we started selling calls again. We have done calendar rolls at the $25 strike price each Friday.
In 70 days the position has generated profits of $5,050, 21.3% or 111% annualized. Very pleased with the return on this quality stock. I think it is a great CC candidate. Plans are to continue to roll the calls and capture the upcoming dividend in Sep.
On Friday SDC stock closed above our strike price of $8.50 resulting in stock being assigned. Purchased the stock on Jul 13. Adjusted our option position on a weekly basis. Diagonal down from $9 to $8.50 on Jul 17 and Calendar rolls on Jul 24, 31 and Aug 7.
On Friday PTON stock closed above our strike price of $66 and stock was assigned. We purchased the stock on July 20. Calendar roll on 7/24 and Diagonal Roll up from $63.50 to $66 on Jul 31. We had an order in for a diagonal roll up on Aug 7 but didn’t get filled resulting in the assignment. Intend to establish a new covered call position in PTON today.
On Friday ISRG closed above strike price of $675 resulting in assignment of the shares. Shares were originally purchased on June 1. Over the 67 days we held the stock we adjusted our position on a weekly basis as shown in the table below.
We have been tracking the daily profitability of covered call positions for an extended period of time. Many of the positions have been rolled several times. If stock is assigned it was removed from the tracking and considered closed. The following positions are “open”.
- Blue Line = Profit or Loss on stock
- Orange Line = Profit or Loss on Option
- Black Line = Net or Combined for Stock and Option.
If the Black Line is above the Blue Line the “covered call” is outperforming just owing the stock. If Black Line is Below Blue the stock is outperforming the covered call.