Have 5000 and sold 50 contracts figuring it was a good hedge on recent pullback. Now it looks like I'll get called away. May roll to jan 12.5.
I'm terrible at this!
you dirty #$%$, I hope you know call selling is why the stock market is so #$%$ up and stocks keep going down when they would be going up. luckily I bought those calls because I can sense when #$%$ are call scalping.
You need to sit tight. Assuming you sold the calls at $0.25, if they get exercised when KOG is, for instance $12.30, you'll have pocketed a gain of ~10%, assuming a price of 11.20 when you sold the calls to open your position. Your only mistake might have been in not taking your position during a huge run-up, which is the best time to sell covered calls.
If you are going to sell calls, make sure you are first happy with the guaranteed return you will receive when you get called away - and remember that return is virtually risk-free which you cannot get by holding the stock. Let them go and rinse, repeat is my recommendation.
I sold 100 contracts of the Jan14 $12.50's over a year ago for $1.80 and bought them back for .20c a couple of months ago fearing a run up in the Q3 ER ~ Didn't think it would pull back after the ER but it did SO I might have been better off not doing anything but I didn't want to be called away ~ Hate playing that "Roll Forward Game" as you're just spinning your wheels most of the time imho ~ I just sold 170 contracts Dec2013 $17's for .20c a few weeks ago which I felt was safe (to not get called) so I got my .20c back (and will make a little too) ~ Waiting for the Feb options to print as I'll be selling Feb's or Mar's, whichever is the most advantageous ~ Sometimes is best just to sit on your hands and do nothing when it comes to the CC options game (again imho) ~ GLTA KOG Longs!