CoverIsBetter

Options Trader: Friday Outlook

Thanks for explaining the WMT trade. I got thrown by the word "expiration" and missed the opportunity to take out the Callers when those August contracts dipped. A few hours Thursday morning would have gotten me on board. I need to join your program, so I understand the recommendation from day to day. Keep up the helpful posts!

Options Trader: Friday Outlook

It is Expiration hour this moment : "sell the Aug $57.50s for $1 or more"

With WalMart trading up near $60, selling this contract has not worked well. Unless your advice was to let it expire? I am totally confused about how this trade was supposed to work.

Options Trader: Friday Outlook

I am not sure I understand why go all the way out to March for the WMT calendar spread? Could you not make more selling a more near term leg of the trade?

Options Trader: Friday Outlook

I applaud Phil for finding a stock so cheap with such a high out-of-the-money Call that it makes this trade (WM) work.
Awesome! I would love to be able to repeat this strategy, but many of my favorite cheap stocks have such a cheap near term Call price, the covered call trade is not worth it.
Guess you have to pay the fee to get more of this pin action?