We better not go much lower I'm running out of cash. The Daily chart from august has the fib 38.2 trend line intersecting at the 887 level. This could be our low since we did break the 920 level. I'll be very surprised if we go any lower than this.
I can't do much since I'm locked up with some losing positions, just gonna enjoy the b-ball and wait for a recovery. Maybe some buying.
I've never written covered calls. Read quite a bit about it I guess. One of those things I've wanted to take a swing at but never got around to.
Two situations are coming to mind here. If I was looking to free up some cash, and had been looking to sell this last rally but snoozed on it, I might be tempted to take a strong premium and go. If I thought the POG was gonna stay down and trade in a lower range for a bit, I would certainly be interested in writing a call just above that range and collecting some profit. Particularly if I got a nice premium for it, which with all the recent volatility, I would assume you would.
If you are thinking were gonna see a POG bounce soon, I would hold off and then write on the bounce. I think I would probably stay near month no matter what.
Again, I don't have any expereince writh covered calls, so take this FWIW...a worthless opinion :)
BTW coinlieutenant, if you are dabblining in writing covered calls, by all means please keep me posted with how it goes for you. Like I said, I've been very intereted in giving it a try.
If you write the calls just make sure you write them far away price wise enough so if the asset rises past your strike price you freak out about the lost profits...Writing them after a bounce would be best, if we bounce. Hindsight can be a pisser... mdp
You can also write your calls on the bounce and on the retest buy back the calls and keep the reduction in price..if you write a call on skf for april 125 when skf is at 120 for say 9 dollars...if skf dips to 111 and the option goes to 4 buy it back(closing the position) and keep the 5.
8 comments:
We better not go much lower I'm running out of cash. The Daily chart from august has the fib 38.2 trend line intersecting at the 887 level. This could be our low since we did break the 920 level. I'll be very surprised if we go any lower than this.
I can't do much since I'm locked up with some losing positions, just gonna enjoy the b-ball and wait for a recovery. Maybe some buying.
Goldfinger,
Would you be writing covered calls if you were in my very unenviable positions heavy on miners?
John
I've never written covered calls. Read quite a bit about it I guess. One of those things I've wanted to take a swing at but never got around to.
Two situations are coming to mind here. If I was looking to free up some cash, and had been looking to sell this last rally but snoozed on it, I might be tempted to take a strong premium and go. If I thought the POG was gonna stay down and trade in a lower range for a bit, I would certainly be interested in writing a call just above that range and collecting some profit. Particularly if I got a nice premium for it, which with all the recent volatility, I would assume you would.
If you are thinking were gonna see a POG bounce soon, I would hold off and then write on the bounce. I think I would probably stay near month no matter what.
Again, I don't have any expereince writh covered calls, so take this FWIW...a worthless opinion :)
BTW coinlieutenant, if you are dabblining in writing covered calls, by all means please keep me posted with how it goes for you. Like I said, I've been very intereted in giving it a try.
If you write the calls just make sure you write them far away price wise enough so if the asset rises past your strike price you freak out about the lost profits...Writing them after a bounce would be best, if we bounce. Hindsight can be a pisser...
mdp
You can also write your calls on the bounce and on the retest buy back the calls and keep the reduction in price..if you write a call on skf for april 125 when skf is at 120 for say 9 dollars...if skf dips to 111 and the option goes to 4 buy it back(closing the position) and keep the 5.
mdp
Obviously there is the guy you need to be listening to Coinlietenant. like the way you think MDP!
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