Yesterday I bought 1000 shrs of LVS and sold the CC's (covered calls) at the 50 strike. buying the stock cost 50.585. sold it today for 48864 for a net loss of 1721. But the CC's made 1407. So I then had 10 naked calls with a potential loss on the position of -314.
This morning after closing the stock position I then sold 20 more naked calls for LVS at the 50 strike. I took in another 1155. I put in an order to buy the 3000 shrs of LVS if it crossed the 50.02 mark.(making these now CC's)
So when the dust settles..Whew.. I could net all of 841 for all this hopping around.
Was it worth it? NO, I don't do CC's often and this is one reason. I could have just held the position and assuming LVS stayed around the 49 point i could have sold next weeks 50 strike again and the same the following week etc. But I don't want to go for coffee and then come back and find the stock trading around 46 etc. So the lesson for me and hopefully you. Don't let your losses mount. Take a loss if you have to and then move on. 10 years ago there were days when i loss 25,000. all because I couldn't pull the trigger when the losses started to mount.
3 comments:
Not sure what you will say to this one but here goes. Yesterday the Dec 41 puts on LVS would have fit you 6% modal so today I sold them at .48 or 20% I did a 100 lot then bought a 20 lot vertical bought Jan. 2012 52.50 Sold 57.50 net debit 1.70 if ever t.hing expires worth less I keep about a grand.
Do you have any stocks that you might suggest like LVS or RIMM that you like that trade around $50?
With such low maintenance available I am somewhat limited to stock around $50.
you might try FINVIZ.com use the screen button and make sure you click the 'optionable' button.
It is free and lets you get close to the range you might like.
good luck
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