November Option Investing – Covered Calls

Markets are still in an uptrend, so I’m back in…not so sure I should have been out, but I’ll cover that later in October’s cashflow report.

My EDC calls were exercised over the weekend, leaving me with only my TMF position. With the markets marching higher today, buy/write orders were fairly easy to execute, with the exception of TMF. Here’s where I ended up:

    DRN – Shares at $49.26 / $49.00 calls @ $4.26
    EDC – Shares at $18.23 / $19.00 calls @ $1.52
    ERX – Shares at $47.80 / $48.00 calls @ $4.86

Update-October 25th

    TMF – Existing Shares / $60.00 calls @ $4.50

I also purchased FAS, with the expectation that selling options every week will create a great stream of paper income. Using today’s premium, a back-of-the-napkin calculation for 4 weeks of trades is a whopping 20% return.

    FAS – Shares at $14.09 / $14.00 calls @ $0.71 (These calls expire Oct. 28th)

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

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