July Option Investing – DRN Covered Calls

My July $70 calls were exercised, leaving me with no position in DRN.  Since DRN is now trading in the mid-70’s, I did lose some purchasing power this month.  Not enough to keep me out of the game, but it is worth keeping an eye on.

DRN option premiums are really high this month, suggesting large price swings.  I purchased DRN at $76.32, and sold $76 Aug calls at $5.22.  Even with the 0.32 loss on the shares, the overall profit of $4.90.share was higher than the premium coming from $77 calls.


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

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