January Option Investing – DRN Covered Calls – Part II

Back in December, I sold covered calls twice using DRN

  1. Entered the day after December option expiration for max time decay
  2. Took advantage of a mispricing opportunity

I monitor DRN price action daily. If I notice the price has been volatile, I’ll check out the option premiums. There are times when you can find options 2 weeks from expiration trading at premiums similar to their 4 week levels.

Since DRN is still in an uptrend, I’m open to adding to my position, especially during this recent mini-correction. Long story short, I added to my position today, and sold a few more options (Jan 22 $55 Strike).

Unfortunately, I messed up my order, so I actually sold in the money options (55), rather than out of the money options (56). I’ll still profit on the trade, but that is not a mistake I take lightly.

Gross Cashflow (today): ~$548 USD

Related Posts:


Income Trade: DRN Position Initiated
https://investingforcashflow.wordpress.com/2010/12/20/income-trade-drn-position-initated/
Income Trade: DRN Position Dividend
https://investingforcashflow.wordpress.com/2010/12/28/income-trade-drn-position-dividend/
Income Trade: DRN Position – Updated

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

One Response to January Option Investing – DRN Covered Calls – Part II

  1. T. Knight says:

    A side note – When I mentioned the “mini-correction”, I was referring to the decrease in price (from $60 – $55) of DRN. I was not referring to the general markets.

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