The gamblers are still playing. I can't even believe how much IV aids the option seller. I've been doing this every Thursday.
Take a boring high Div stock like DOW that really has no chance of exploding higher anytime soon. I just sold a bunch of covered calls again. The buyer pays me 2% for the privilege of buying the stock tomorrow for 2% above current price. For one day! As if you cant likely buy it cheaper on Monday in this market. It seems crazy. If DOW ends up a buck in the money tomorrow which I doubt, I'll roll it forward a week and take a little more premium. I completely understand how I can lose with AAPL, HD or some other high flyer because it has happened to me, but this is pretty crazy I can repeatedly do this with stocks like DOW, IP and other boring stocks with no short term catalyst whatsoever. Guess I better just enjoy it while it lasts. IV is definitely my friend right now. Just amazed what folks will pay me for a one day privilege. Makes my dividends I may or may not even get seem so trivial right now.
Take a boring high Div stock like DOW that really has no chance of exploding higher anytime soon. I just sold a bunch of covered calls again. The buyer pays me 2% for the privilege of buying the stock tomorrow for 2% above current price. For one day! As if you cant likely buy it cheaper on Monday in this market. It seems crazy. If DOW ends up a buck in the money tomorrow which I doubt, I'll roll it forward a week and take a little more premium. I completely understand how I can lose with AAPL, HD or some other high flyer because it has happened to me, but this is pretty crazy I can repeatedly do this with stocks like DOW, IP and other boring stocks with no short term catalyst whatsoever. Guess I better just enjoy it while it lasts. IV is definitely my friend right now. Just amazed what folks will pay me for a one day privilege. Makes my dividends I may or may not even get seem so trivial right now.