May Option Investing – DRN and FAS Covered Calls


My basic technical analysis for April showcased continued strength in DRN & FAS, weakness in EDC & ERX, and sideways action for TMF.

The strength of the general markets late in the month created a brief rally, which brought us into another confirmed uptrend. April calls on DRN and FAS were exercised, putting me in all cash as of 4/21. Not a bad position if the markets were still in a correction, but buying back into rally meant that my shares were probably overpriced.

Looking at the chart for DRN, it gaped up on the 25th, so I sold in-the-money calls ($70). I assumed the rally would be short-lived (TRUE) and that DRN would fill in that gap (FALSE – so far).

ETFs (Bought)

  • DRN – $72.04
  • FAS – $103.46 (Purchased on 4/30)

Calls (Sold)

  • DRN – $70.00 call @ $4.00
  • FAS – $104.00 call @ $2.01 (Expired)- Counted towards April Cashflow
  • FAS – $101.00 call @ $1.18
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About T. Knight
Blogging about my journey to financial independence via investing for cashflow.

One Response to May Option Investing – DRN and FAS Covered Calls

  1. Pingback: May Option Investing – DRN and FAS Covered Calls « Investing for … | Cash Flow

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