Covered Calls for Fun & Income

February 22, 2009

February 2009 Expiration – It Wasn’t Pretty

The week of expiration was one of the worst I have ever seen. All my positions finished OTM and one ATM. This is the first time this has ever happened to me. Thankfully the underlying stocks didn’t tank.

What I will do with each position is a mix of technical and fundamental analysis to determine if I want to write more calls against a stock, wait to see if the stock recovers and either write calls or sell for a gain, or close the position for a loss and move on.

One position I have is MBIA (MBI) that I had a FEB 4 Call on. Since the stock closed at 4.00 it will be interesting to see if it gets called. My broker tells me that any stock $.01 ITM will automatically be assigned, but I had one position last month that was $0.12 ITM that did not get assigned. Their explanation was there was no interest in exercising all the open calls. So a word or caution regarding that. Of course my answer to that was to sell the stock on Monday as it rose and add another 22 cents to my gain.




  1. Jeff,

    How long have you been using John Brasher’s CallWriter service? What are the key attributes of his methodology/approach for consistently identifying and selling winning CC trades?


    Comment by mounddweller — February 24, 2009 @ 9:09 AM

    • Troy,

      I have been using his service for slightly over a year now. His approach is pretty conservative, but his real-time lists are the primary reason for me signing up. Prior to that I was a OptionsXpress customer mainly for their covered call scans. Once I had John’s lists, I dumped OptionsXpress (high fees) and went with an old friend, Interactive Brokers (very low fees) due to my high volume of trades.

      A point of clarification: John doesn’t recommend trades, his primary goal is to provide tools and information to assist traders in making high quality decisions. Via his service, you can scan for prospect (real-time lists), research potential trades (research page) and track real-time returns on your trades and roll/exit options (Trade Management Calculator). In addition, about once a month, he has a webinar that is highly interactive.

      All this just makes the game more fun and profitable. I like to do my own thinking.

      PS – I am an affiliate of his, so please use the links on my blog if you are considering his service – Thank You


      Comment by Jeff — February 24, 2009 @ 9:58 AM

RSS feed for comments on this post. TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Blog at

%d bloggers like this: