April Option Investing – EDC Covered Calls

EDC went on quite a ride over the past few weeks. At first glance, this one of those times that selling covered calls did not appear as profitable as trading. But that’s not the whole story.

Since my trading system isn’t set up to trade EDC in a way that would allow me to capture the price action last month, I can safely say that I wouldn’t have made as much money as I would like to think.

And this morning’s drop hit. Can’t say I wasn’t glad to NOT own EDC…it almost fell 10%! Since I did not own anything, it was a buying opportunity, rather than a crying opportunity.

I’ve noticed a trend (totally unscientific observation) that individual investments usually bottom right around lunchtime. I don’t know why this is, but it allows me to keep my powder dry without feeling anxious that I’m going to miss out.

I ended up selling May 20 call options with a $39.35 strike price for $2.40 and $2.60.


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

One Response to April Option Investing – EDC Covered Calls

  1. Arletta Arnt says:

    Hi there, I found your blog via Google while searching something and your post looks very entertaining for me. Great page you are running there. And many thanks for posting this.

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 )

Google+ photo

You are commenting using your Google+ 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 )


Connecting to %s

%d bloggers like this: