December Option Investing – DRN Covered Calls

Sold Jan 22 2011 Call options on DRN @ $50 and $51 strike prices.

Gross Cashflow: ~$1110

Since these calls were in the money, I will have a capital loss in January. However, according to my trading system, the overall markets are still in a downtrend, so I sold positions below the strike price.

If my program indicates a shift back into an uptrend, I may purchase some additional shares of DRN and sell calls above the strike price the first week in January.

Happy Hunting!
TK

Advertisements

About T. Knight
Blogging about my journey to financial independence via investing for cashflow.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: