Seeking Alpha
  • Ocean Man
    Bought to close covered calls on $KORS, 25% lower than what I sold them for 2 weeks ago. $1.75 ---> $1.30. http://seekingalpha.com/s/9gxip
    12/5/12
    Reply (9)
    • Ocean Man: Those were Feb $60s.
      12/5/12
    • parrothead1972: New to the call/puts..etc. So are you then bullish or bearish on $KORS?
      12/5/12
    • Ocean Man: Bullish. I hold shares, then I sell out of the money calls on rips and buy them back cheaper on dips.
      12/5/12
    • parrothead1972: gotcha...still learning certain terms and types of buys/sells. I hold shares.
      12/5/12
    • Dr. Kris: Covered calls is a good incoming generating strategy for retirement accounts, FIW. Channeling stocks make good covered call candidates.
      12/5/12
    • Vertical Spread: I have a whole portfolio of stocks I have done this too. They continued to drop and still not recovered, i.e. $PBI
      12/6/12
    • Dr. Kris: Which is one reason I like writing covered calls in up markets. Selling a call will lower your cost basis but if the stock keeps dropping...
      12/6/12
    • Dr. Kris: ...I'd advise buying back the call and selling the stock. Just because you have a covered call doesn't mean you give up on trade management.
      12/6/12
    • Ocean Man: $KORS up 4% today and those calls were back up to $1.61.
      12/6/12