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InterDigital, Inc. Message Board

  • jeffreeK jeffreeK Oct 18, 2007 1:13 PM Flag

    A good time for covered calls...???

    Shares again are cheap...Volatility, and premiums on options are pretty high...
    Got extra money just "sitting there"...???
    Buy some more shares, and sell call options on them...Good returns, varying with the amount of "defense or risk" you are willing to take...

    I do this All the time...and Time works for me...
    I Usually keep Most of my shares covered, with a variety of strike prices and expirations...
    Down days often are the days I take profits...


    jmfo


    ...jk...

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    • I've owned this for 2 weeks and sold a Dec 22 1/2. I used to do this and did much better than trading. Followed IDCC for awhile now. What did you mean by making money on the "down" days. Do you sell Puts or buy Puts?

      • 1 Reply to pirates144
      • I mostly sell covered calls out a bit farther than a month or two...Lots of "januarys"...'08s and 09's have been my favorites...(I may end up Buying some 2010s)
        When the stock was in the $30's, I sold a bunch of $30 strike calls (defensive) for some very nice premiums, and later a bunch of $25 calls...again very nice premiums, but possible to have those shares called...Time will tell...

        Since the premiums on those have deteriorated, I can always buy them back at a profit...on Down days, if the price of those options drops enough for My taste...

        Volatility is still pretty high, as are the premiums, so at this point I would rather Sell options on accumulated-for-cheap shares...One could sell in-the-money calls and still make a decent %...


        jmfo...and Best of Fortune


        ...jk...

 
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