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Spectrum Pharmaceuticals, Inc. Message Board

  • teroinoir teroinoir Feb 23, 2013 11:37 AM Flag

    I'm still selling covered calls and making a killing

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    • So am I. Would you believe I sold Feb $20 calls (turned into $19.85's after the div) last July for over $2.00? Later on sold $11 puts that turned into $10.85's for $1.60. This was probably the best ops ex month so far for me but this has been a cash cow. I owe something to whoever it was on this board who talked about selling OTM puts as a strategy with a stock churning sideways & it got me to take a second look. It took some manuevering since all of my SPPI is in my IRA account so that I could only write cash secured puts. However, Schwab just recently started a pilot program giving Level 2 approval for IRA's, allowing spreads, so when I could buy $9's for pennies I could cover them that way and free up the cash. Still no margin capability in an IRA account, which actually suits me fine--I use it "advisedly only" in my other account since it can be such a death trap. I love it--my basis in the shares I hold is in the $7.** range, I can lather, rinse and repeat with the options and eventually cash out when the share price gets to where it is supposed to be.

      • 2 Replies to puppie96
      • " I owe something to whoever it was on this board who talked about selling OTM puts as a strategy with a stock churning sideways & it got me to take a second look."

        You're welcome.

        By the way, if anyone wants to check what the imputed price of an option is, given the underlying stock price, the IV, and the time remaining to expiration, go to this address:

        volatilitytrading dot net slash option_price_calculator dot htm

      • Now that's crazy logic...
        "Would you believe I sold Feb $20 calls (turned into $19.85's after the div) last July for over $2.00?'

        The stock was trading at $17 last July and you got $2 for the Feb 20 calls?
        You made $2 on the calls and lost $5 on your shares... That's a winning strategy !!!
        You were better off selling your shares 1t $17 and buying them many many times at $11....

        I guess you can't argue with a genius,

        The Gunner

        Sentiment: Buy

    • I'm so happy for you...great post by the way LOL

      Sentiment: Buy

    • Same here, I sold 50 march 16 $11 calls for .98,so far so good.I'm hoping that it will end up worthless. if it doesn#$%$ ok because I payed 10,63 for the shares.with an average to 8,49 got from previuos sellings.Sherry the fat mouth calls me a short,what an idiot.

      • 2 Replies to venivedivinci
      • Don't mind sherry,she so fricking stupid that she makes me puke.choomystick sherry,you might like it

      • Always interesting to hear how other people play it. Usually better to sell puts/calls with longer expiration dates to get the additional time premium. If yours are all covered calls, you have more hard shares than I do. I rarely or never would go all or nothing with my whole position in this or any stock, I'd write on maybe a third of it and wait and see, then maybe sell some more with a longer exp/higher strike if the pps kept appreciating, etc. With SPPI I've had these kinds of "leapfrogging" positions on a regular basis. I also had some Novs and Jans at a nice profit, but Feb was huge on both the put and call side for me.
        I wish people discussed option positions more often. With the continued sideways movement I'm now looking more at writing puts.

 
SPPI
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