02-27-2019, 10:21 AM
(02-27-2019, 08:48 AM)fenders53 Wrote:(02-27-2019, 01:31 AM)crimsonghost747 Wrote: A more regular trade: covered call play with WBA
Went in at $71.36. Sold a $72 call for 8th of March.
The plan here is just a quick monthly check, (or a couple weeks), rinse and repeat with solid companies you are OK with holding if they dip?
Pretty much.
In general these trades are 4-5 days long. I have a set amount of dollars I use for these options, so if something gets freed up on Friday then I try to find a new place for it on Monday but sometimes there is nothing so I keep looking the next day. The majority of the time I sell the call for the Friday same week but I can do 2 weeks too if it makes more sense. I don't think I've ever done more than 2 weeks at a time.
I only trade companies I don't mind holding (though holding is never the idea) and usually only companies that I already own. A decent dividend helps too as it's always more income that I might stumble into along the way if it turns into a longer term ordeal.
If the first call expires worthless then I just sell the best call I can find the next week and indeed, rinse and repeat until the shares get taken away.