Covered Calls for Fun & Income

March 16, 2009

New Look – New Positions

Filed under: Covered Calls — Tags: , , , , , — Jeff @ 1:22 PM

If you have been here before, then you know that this is a new theme. It turns out I am writing in this blog much more than I ever expected to, and I needed something wider with a smaller font so I could fill it with my hot air. If you haven’t notice, this blog is a bit more light hearted than many other financial blogs – it’s because I have so much fun with Covered Calls.

Today I entered a position on LNC from my watch list yesterday. PRU and HIG took off to the upside pretty heavy this morning and brought the ITM expiration profit down to 1% or so. But LNC was still hanging in there at a respectable 5.33% return. Here are the details:

BTO Stock

STO Option

Option Exp/Strike

Cost Basis

ITM Return

Downside Protection

LNC 9.18

LNCCU 2.06

MAR/7.50

7.12

5.33%

28.9%

I have a position in TXT right now that expired OTM last month. Today, the price rose enough to justify writing a call against it for April. Although it puts me upside down if it expires ITM in April, I plan to roll it out or up as needed. So I sold to open an April 5.00 for 1.05 that brings my cost basis to 5.50 (see open positions for detail).

I think, therefore I am – I think.

Jeff

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