July Option Investing – TMF Covered Calls


My basic technical analysis for June showed TMF finding support in the mid to high 70’s.  Uncertainty in Europe contributed to June’s weak market, which is usually a plus for TMF.  Unfortunately, being the “least dirty shirt in the hamper” isn’t all that special, as the U.S. has it’s own debt issues.

My June options were exercised, so I bought 200 shares of TMF the following Monday.  Calls were trading with a large premium at the time, which was probably due to the 5 weeks of time value they all contained.  Unfortunately, my order did not get placed (put my limit order too high within the B/A spread), and then I got busy.  I had secretly hoped that TMF would pop on some bad news out of Europe, resulting in capital gains for June.

End result: Bad news came (and sent the general markets back into a correction), but TMF did not respond.  I got tired of waiting and decided to take what I could get…needed SOME cashflow in June!

ETFs (Bought)

  • TMF – 200 shares @ $81.60

Calls (Sold)

  • TMF – 2 $82 call @ $3.00
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About T. Knight
Blogging about my journey to financial independence via investing for cashflow.

2 Responses to July Option Investing – TMF Covered Calls

  1. Amina says:

    Unlike other blogs I have read (which are not really good), I find your posts very interesting.

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