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Fear & Greed Trader
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INDEPENDENT Financial Advisor / Professional Investor- with over 30 years of navigating the Stock market's "fear and greed" cycles that challenge the average investor. Investment strategies that combine Theory, Practice and Experience to produce Portfolios focused on achieving positive... More
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  • Call Writing Strategy Part 34 -- Staying With NVDA 2 comments
    Jul 30, 2014 11:33 AM | about stocks: NVDA, LVS, EBAY, NUAN, FCX

    The NVDA weekly July 25 options that had a strike price of 19 expired worthless last Friday. Today I sold the Aug 19 option for $.30

    As you can see from the chart above this option expires in 17 days. The proceeds from the sale will yield 1.6% in that timeframe if not called and 3% if called on Aug 16th.

    (click to enlarge)

    The shaded positions are those that have expired or been 'called away"

    We now have 5 positions, 4 are covered with option sales, the EBAY position remains uncovered as I await a further bounce in the shares to write the 55 or 56 strike price call.

    This is an actual portfolio, all trades can be seen here in this blog from the portfolio inception date of 6/5/13.

    Income now resides at $29,180 on the initial 100,000 investment.

    Best of Luck to All !

    Disclosure: The author is long NVDA, LVS, EBAY, NUAN, FCX.

    Additional disclosure: I am long numerous equity positions - all of which can be seen here on my Instablog. It is my intention to present an introduction to these securities and state my intent and position. It should be used as a 'Starting Point' to conduct your own Due Diligence before making any investment decision. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.

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Comments (2)
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  • UncleSam187
    , contributor
    Comments (208) | Send Message
     
    Thanks for the update...I'm hesitant to sell a call prior to NVDA's earnings. the .30 premium would be nice, but it's too little downside protection if they miss, and i feel like sacrificing too much upside selling a 19.00 strike on a potential beat. just my 2 cents
    however, maybe it's a moot point since the strategy of this port is income..
    30 Jul 2014, 02:28 PM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (6446) | Send Message
     
    Author’s reply » Uncle --

     

    i agree if you don't already own the stock -- i wouldn't buy and write before earnings

     

    since this is my second shot at garnering income -- i decided to take it --- as you stated i just want the income and if its taken , so be it

     

    for the record , i also own shares in my portfolio that are not covered as i do believe NVDA shares are cheap here..

     

    and in that respect they are also a good covered candidate for this portion of my holdings which is designed to print cash ..

     

    i surely see the points you make

     

    best of luck
    30 Jul 2014, 02:45 PM Reply Like
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