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
Author Archives: jefflsmith
SPY Ladder Update…..going the wrong way!
SPY Ladder…..
Assigned on NUE…..evaluating dividend capture strategy on series of stocks to see if it is scalable…
Assigned on SDC
Why we do covered calls….
Closed Position on MOS….IC rescued CC
Closed MU Position
A bright spot on down day…..
Update on SDC Covered Call Strategy after 422 Days….
https://coveredcallswithjeff.wordpress.com/2021/03/21/covered-call-strategy-with-sdc-smile-direct-club-after-422-days-144230-unrealized-profit-123-return-or-107-annualized-return/
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.
Assigned on INMD, good trade but wasn’t ready for the shares to get called yet
https://coveredcallswithjeff.wordpress.com/2021/03/20/assigned-on-inmd-profit-of-6675-in-66-days-25-return-or-140-annualized/
Despite trying a lot of different strategies in Schwab accounts my IB Account with primarily covered calls is outperforming……
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!
https://coveredcallswithjeff.wordpress.com/2021/03/16/ib-account-update-performing-much-better-than-larger-schwab-accounts-where-i-invest-far-more-time-to-manage/
Short term CC dividend capture strategy….trying something different….not sure if it will be sustainable over time
https://coveredcallswithjeff.wordpress.com/2021/03/11/wmb-covered-call-dividend-capture-assigned-day-before-ex-div-return-on-capital-2-6-in-2-days-or-476-annualized-but-no-dividend/
Doing my best to pare, protect and figure out how to protect the capital and make money in a down market…..
https://coveredcallswithjeff.wordpress.com/2021/02/26/trying-to-protect-versus-making-more/
Update on Put Strategies
Gaining experience with IC, BuPS and DiagBuPS……learning on the fly…..so far so good….
https://coveredcallswithjeff.wordpress.com/2021/02/21/update-on-put-strategies/
Update on AMZN Covered Call Strategy after 277 Days
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.
https://coveredcallswithjeff.wordpress.com/2021/02/21/update-on-amzn-covered-call-strategy-after-277-days-92620-roi-81-or-107-annualized/
New CC in RTX – looking to capture dividend next Friday
https://coveredcallswithjeff.wordpress.com/2021/02/19/new-cc-in-rtx-raytheon/
IC on ABT and DXCM….paying to learn???
https://coveredcallswithjeff.wordpress.com/2021/02/13/iron-condor-ic-on-abt-dxcm/
Covered Call on NIO – Update and Progress – Interesting ride!
https://coveredcallswithjeff.wordpress.com/2021/02/11/covered-call-on-nio-unrealized-profit-of-56870/
Closed Covered Call position on DXCM prior to earnings announcement after hours. Profit of $4,252.
https://coveredcallswithjeff.wordpress.com/2021/02/11/closed-out-dxcm-cc-profit-of-4252/
Closed BuPS on PINS
https://coveredcallswithjeff.wordpress.com/2021/02/09/closing-bups-on-pins-profit-1051-in-27-days-return-on-capital-of-21-or-284-annualized/
Iron Condor on CHWY
This is only the second or third Iron Condor I have traded…..based on Tastytrade recommendation.
https://coveredcallswithjeff.wordpress.com/2021/02/09/chwy-iron-condor-mar-19-75-95-125-145-net-credit-5-29/
Closed CC on CFG, Picked up Dividend
https://coveredcallswithjeff.wordpress.com/2021/02/08/closed-cc-on-cfg-profit-of-1-7-in-13-days-47-8-annualized/
BuPS on PTON….looking or a bounce
https://coveredcallswithjeff.wordpress.com/2021/02/05/new-bull-put-spread-on-pton/
New CC on IBM – goes ex div Feb 9
https://coveredcallswithjeff.wordpress.com/2021/02/04/new-covered-call-on-ibm/
Adding Diag BuPS to CC Position on ATEC
https://coveredcallswithjeff.wordpress.com/2021/02/04/new-diagonal-bull-put-spread-on-atec/
New CC on DHI
I got tired of chasing BYND stock in a covered call strategy….too much daily movement….something a bit more conservative….
https://coveredcallswithjeff.wordpress.com/2021/02/02/new-covered-call-on-dhi-home-builder/
New CC on KBH
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.
Graphs on Individual Positions Over Time in IB Account
Tables/Graphs representing each of the positions over time. Good representation of where the profits are being generated.
https://coveredcallswithjeff.wordpress.com/2021/01/23/individual-positions-in-ib-account-and-return-over-time/
Good week in market = good week in IB Account
Positions and Friday trades at bottom of post.
https://coveredcallswithjeff.wordpress.com/2021/01/23/ib-account-wk-ending-1-22-21-new-high-of-381160-16564-in-the-week-4-5/
Summary of NIO CC through 115 Days
https://coveredcallswithjeff.wordpress.com/2021/01/10/covered-call-on-nio-generating-unrealized-gain-of-23447-in-115-days-129-or-410-annualized/
Summary of ATEC CC + Naked Put
https://coveredcallswithjeff.wordpress.com/2021/01/10/atec-position-covered-call-naked-put-generating-positive-results-unrealized-gain-of-1687-in-28-days-roi-28-9-or-377-annualized/
Good start to 2021…..at least for one week!
https://coveredcallswithjeff.wordpress.com/2021/01/10/ib-account-week-ending-1-8-21-17979-or-4-19-return/
Thanks for the ideas and comments in 2020……great site, great sharing. Best option trading site on the web!
https://coveredcallswithjeff.wordpress.com/2021/01/03/ib-account-up-32611-or-9-9-in-december-2020-finished-up-163989-or-83-7/
Dec 31 $3250 Call Vertical Roll to $3310, $60 increase in strike price, Debit $33.48 Stock at $3312
Opening Transaction PTON BuPS Credit $1.32, Stock at $58.20
Assigned on EW Covered Call
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.
https://coveredcallswithjeff.wordpress.com/2020/12/28/assigned-on-ew-covered-call-profit-of-3498-in-63-days-roi-of-8-8-or-51-annualized/
Not sure this week will be as profitable as the last couple!
https://coveredcallswithjeff.wordpress.com/2020/12/21/ib-account-week-ending-12-18-20-new-high-new-position-on-bmy/
Update on BCRX CC and adjustment post drug approval
https://coveredcallswithjeff.wordpress.com/2020/12/07/good-week-for-bcrx-position-after-122-days-unrealized-profit-of-29300-roi-of-76-3-or-125-annualized/
Update on NIO Covered Call Strategy
https://coveredcallswithjeff.wordpress.com/2020/12/01/update-on-nio-covered-call-strategy-after-77-days-unrealized-profit-of-15175-roi-of-83-5-or-396-annualized/
Update on STE Covered Call Strategy after 180 Days
#coveredcalls $STE
https://coveredcallswithjeff.wordpress.com/2020/12/01/covered-call-strategy-on-ste-after-180-days-unrealized-profit-of-10045-32-6-roi-or-66-annualized/
IB Nov Update and Positions
https://coveredcallswithjeff.wordpress.com/2020/11/30/good-nov-in-ib-account-but-not-back-to-high/
Smasty – looking for input/comment
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.
Naked Puts to Covered Call on SDC
https://coveredcallswithjeff.wordpress.com/2020/11/25/new-approach-to-entering-a-cc-position-selling-naked-put-getting-assigned-then-selling-calls/
Thanks Option Iceman.
ABT Covered Call Strategy Progressing Well
https://coveredcallswithjeff.wordpress.com/2020/11/16/covered-call-strategy-on-abt-progressing-well-profit-of-22682-in-174-days-or-83-174-annualized-31-rolls-of-the-short-calls/
REGN BuCS – 9 Rolls and still a challenge
We have been tracking our REGN BuCS since it was established on Oct 12. It remains a challenge…..
https://coveredcallswithjeff.wordpress.com/2020/11/16/regn-bull-call-spread-a-challenge-so-far/
Wild ride over past 30 days…..definitely need to learn more about handling volatility around earnings
https://coveredcallswithjeff.wordpress.com/2020/11/12/ib-account-down-from-high-up-from-dip-over-past-30-days/
Last Week and Oct/YTD Results – Tough week/month
https://coveredcallswithjeff.wordpress.com/2020/11/02/tough-week-and-oct-month-end/
DXCM drops $90 after good earnings announcement…..
https://coveredcallswithjeff.wordpress.com/2020/10/29/dxcm-hard-to-understand-a-90-drop-and-how-we-responded/
Trade and Account activity Wk ending 10/23 – lots of diagonal down rolls….
https://coveredcallswithjeff.wordpress.com/2020/10/24/summary-of-account-activity-wk-ending-10-23-risk-and-margin-reduction-via-diagonal-roll-downs/
ABT
STO ABT Oct 30 $111 Call Credit $1.31 to reestablish covered call yesterday
https://coveredcallswithjeff.wordpress.com/2020/10/23/follow-up-to-abt-post-on-10-21-about-buying-back-oct-23-107-calls/
Adjusting ABT Covered Call following earnings announcement…..logic and action taken
https://coveredcallswithjeff.wordpress.com/2020/10/22/adjusting-abt-covered-call-in-reaction-to-announcement-of-good-quarterly-earnings-and-raised-guidance-and-stock-drops-2/
ABT BTC Oct 23 $107 Calls…..Abbott earnings good…raised full year guidance and stock dropped $2….so I bought the calls back for $.85 ….looking for a bounce and will cover shares again. STO on 10/15 for $2.87.
Schwab Account Week Ending 10/16 – Trades and Positions
https://coveredcallswithjeff.wordpress.com/2020/10/18/schwab-account-wk-ending-10-16-trades-and-positions-24245-or-1-in-the-week/
Covered Calls – IB Positions and Trades 10/16
https://coveredcallswithjeff.wordpress.com/2020/10/18/ib-account-wk-ending-10-16-trades-and-positions-13917-or-4-2-in-the-week/
IB Account Covered Call Positions and status
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.
https://coveredcallswithjeff.wordpress.com/2020/10/14/ib-account-holdings-and-update-23742-or-7-5-in-last-30-days/
New Covered Call on ATEC
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.
https://coveredcallswithjeff.wordpress.com/2020/10/09/new-covered-call-on-atec/
Is SDC a good candidate for covered call strategy?
https://coveredcallswithjeff.wordpress.com/2020/10/09/is-smile-direct-club-sdc-a-good-candidate-for-covered-calls/
Update on Covered Called Strategy on Steris (STE)
https://coveredcallswithjeff.wordpress.com/2020/10/09/follow-up-on-ste-covered-call-strategy-stock-price-run-up/
Wild ride….every day! Volatility = great premiums!
https://coveredcallswithjeff.wordpress.com/2020/10/08/crazy-market-somehow-generating-great-roi/
Beat up a little with DXCM CC Strategy as stock has dropped from $430 to $384
Short options have helped but hard to offset $50 drop in stock price.
Update on PTON CC
https://coveredcallswithjeff.wordpress.com/2020/10/05/peleton-pton-covered-call-strategy-2771-in-33-days-roi-of-17-9-or-198-annualized/
Assigned on GS
https://coveredcallswithjeff.wordpress.com/2020/10/05/goldman-sachs-gs-covered-call-assigned-profit-of-455-in-44-days-roi-5-or-4-annualized/
Some thoughts and examples on “working” covered calls over an extended period of time versus “trading”
https://coveredcallswithjeff.wordpress.com/2020/09/29/treating-covered-call-positions-as-a-mid-term-strategy-versus-one-and-done-trades/
NIO Covered Call
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.
AMAZ CC Sep 18 $3200 Roll down to $3000 for $43.10 credit
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!
Assigned on BAX Covered Calls, Profit $3,325 in 82 days, 3.8% or 17% annualized.
~ JEFFLSMITH ~ EDIT”ASSIGNED ON BAX COVERED CALLS, PROFIT $3,325 IN 82 DAYS, 3.8% OR 17% ANNUALIZED.”
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.
Covered Calls 8/21 and Actions
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.
Update on ABT CC, Profit $8,497 in 87 Days, 31.1% Return or 130% Annualized
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.
New Covered Call Position in SDC
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.
Is VIAC a good candidate for covered call writing?
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.
Assigned on SDC stock.
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.
Covered Call on PTON Assigned, Profit $6,090 in 19 Days, 9.6% ROI or 184% Annualized
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.
Covered Call on ISRG Assigned – Profit of $6,944 in 67 Days, 12% ROI or 66% Annualized
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.
“Covered Calls” Outperforming “Stock Only” in 13 of 20 positions.
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.
401(K) Account
General Account
