Maybe I should change my MB name to tradingexpert...After multiple insiders sold stock in the $8's I sold the May $9 call thinking the stock would be dead for awhile. I sold it for about .35 and bought is back today on the last day for $4.04. Why, I did not want to pay tax on my large gain at the ST, marginal tax rate, so I moved out and up to the Dec 15 call giving the stock a little more room to run and cushining the blow and cost by $1.5. That was a good lesson, don't sell calls for peanuts. It's not the first time I have learned that lesson. It's funny, I lost more on the calls than I originally paid for the stock, so now my cost basis is around $6.5, but now I have a ST loss to use against other ST gains and any sale after Dec will be at the LT capital gains rate.
I have been selling puts every month and not once have they not expired worthless. I have sold 10 contracts 9 times from.85 to 1.30 each. When you can pocket between 850.00- 1300.00 evry month plus own the stock well it doesn't get better than that. Short sellers making 30 40 here and there is stupid compared to this.