March Option Investing – DRN Covered Calls

With DRN shares in hand, I entered $62 calls before the market open. Sometimes, there are open orders that people forget to close or entered incorrectly before the weekend. A properly set limit, along with a little luck, and you could be awarded a nice arbitrage bonus in the form of a few hundred dollars.

I entered sell orders for $62 April calls with limits at $3.50 and $4.00. I did not plan on the nice little bump in the markets today, so my 3.50 limit order got executed almost immediately. My $4.00 limit executed by the end of the trading session. Not exactly as I planned, but no complaints here.

Granted, I could have waited, sold $63 calls and captured another dollar of capital gains. But that defeats the purpose of trading for income and cashflow. Since the overall market is in a downtrend, a little extra downside insurance is a good thing.

Gross Cashflow: ~$2250 USD


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

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