Covered Options - Recent Action - cool_club - bivio Investment Clubs

Covered Options - Recent Action

MikeL Knight on

I am new to the process of selling covered options but I have been doing a lot of reading. I was referred to the COOL_CLUB sight for additional insight and have found the presentations and discussions to be invaluable.

With that, I set up an OIC Virtual Trading account with $100K and executed my 1st series of trades this week:

Buy 600 shares of SPY @ $141.30 on 10/25

On 10/25 STO Call SPY strike of $141.50 for 6 contracts Nov 02 expiration @ 1.23 premium

Net Preimium at expiration calculated to be $723.50 for APR 45%

On 10/26 BTC Call SPY strike of $141.50 for 6 contracts Nov 02 expiration @ 1.00 premium

Net Premium of $109 for APR 47%

At the moment SPY is trading around $140.80. I still own 600 shares @ 141.30. Waiting on another opportunity to do an STO Call. With SPY being down a bit, I do not have enough money in the account to entertain STO PUT and make the 20% APR and $100 targets.

Thanks much,

Mike Knight

Paul Madison on

Hi Mike,

Glad you discovered us and I hope you can join us live in the clubhouse when we get started back up again on November 7th at 5 pm ET.

I am currently thinking that on November 7th we will again look at selling covered options on Broad Market Index ETFs (notably SPY and IWM) as I believe we will have some good opportunities at that point.

See you in the cloud!

Paul Madison

TheCOOLClubDude@gmail.com

www.bivio.com/COOL_Club

On Fri, Oct 26, 2012 at 12:03 PM, MikeL Knight <mlknight0153@gmail.com> wrote:

I am new to the process of selling covered options but I have been doing a lot of reading. I was referred to the COOL_CLUB sight for additional insight and have found the presentations and discussions to be invaluable.

With that, I set up an OIC Virtual Trading account with $100K and executed my 1st series of trades this week:

Buy 600 shares of SPY @ $141.30 on 10/25

On 10/25 STO Call SPY strike of $141.50 for 6 contracts Nov 02 expiration @ 1.23 premium

Net Preimium at expiration calculated to be $723.50 for APR 45%

On 10/26 BTC Call SPY strike of $141.50 for 6 contracts Nov 02 expiration @ 1.00 premium

Net Premium of $109 for APR 47%

At the moment SPY is trading around $140.80. I still own 600 shares @ 141.30. Waiting on another opportunity to do an STO Call. With SPY being down a bit, I do not have enough money in the account to entertain STO PUT and make the 20% APR and $100 targets.

Thanks much,

Mike Knight

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