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.

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: