A Quick And Dirty Update To "Quick And Dirty"...
6/17/2016
Well that was an entertaining week. Too bad I didn't read this 4 weeks ago.
Jeff Gundlach: "Things Are Going To Get Pretty Scary"
Then I would NOT have been caught selling naked puts into a declining market - It's a lot more "fun" than selling covered calls - kinda like swimming with big hungry sharks outside the cage wearing only a speedo. (OK, that's a pretty scary visualization in and of itself)
OK, so what did that translate into? lots of rolling around to keep the margin vultures away:
And to get back to SDRL:
as you can see I rolled those $3 strike calls out again to July 1 for a small net credit:
Maybe I'll get to a $0.00 cost basis before the market does. At roughly $6,000/month ongoing premium income though it will take longer than I had originally thought to hit the $0.00 target. Bummer.
Unfortunately I have not lent out my shares yet as you have to hold them "x-margin" ie "fully paid for" to do that, and that would require $16,000 more equity than I currently have. Maybe next week.
Time for
YRMV