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.
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.
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.
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.
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.
- VIAC 6/19 $24 net $22.14
- MO 6/19 $41 net $40.05
- SJR 6/19 $17.50 net $17.18 (pays monthly dividend)
Recent run up in stock to $8.66. Details on the CC position established in April are below.