10-06-2020, 07:04 AM
(10-05-2020, 01:22 PM)fenders53 Wrote: First of all, NilesMike please help me with this, but r Refrain from taking it to fancy option levels. Let's skip the complicated "Greek" math for now as it isn't helpful for noobs. I have been asked to start again from the basics. We are just explaining things here, not trying to amaze as that will just discourage the folks we are trying to help. Feel free to post up a simple one contract trade to help explain this.
Missed the part of posting an example.
KO Bought in July for 45.35. Looked like good support area.
9/2 I sold a 50 call for .50 because 49/50 looked like a top or resistance area, expiring 9/11.
9/11 the option was worth .30 so I bought it back to avoid early exercise because 9/12 was ex div. Collected my .20 option money and .41 dividend.
9/14 the stock was 51+, I sold 52.50 strike for .81 expiring 10/16.
9/21 KO dropped to 49, bought call back for .39 (keeping .42)
9/28 KO was at 49.00. I sold OCT 16 $49 call for 1.26
10/1 that call was only worth .86 so I bought it back (keeping .40)
3.1% return for the month from options/dividends.
It doesn't take a lot of time, check prices a couple times a day on phone to keep current or catch the market news on the radio, that's it.