Wed, Jan 28, 2015, 4:27 AM EST - U.S. Markets open in 5 hrs 3 mins

Recent

% | $
Quotes you view appear here for quick access.

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...

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • 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...

 
IDCC
50.89-0.88(-1.69%)Jan 27 4:00 PMEST

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
Microsoft Corporation
NASDAQTue, Jan 27, 2015 4:00 PM EST
Caterpillar Inc.
NYSETue, Jan 27, 2015 4:00 PM EST