LCC is proving to be a good techincal covered call. I am short the Jan 5 calls and after the impact of the failed attack on Christmas Eve looks like LCC has a new base in the 4.80s. This may prove to be a well executed trade if the stock stays below 5 over the next two weeks. I was planning on using the cover to sell the stock but with this new base it may be worth hanging on to and trading out of the money calls on... 2 ways to do this; close out the option for a 60% profit and sell 6 or 7.50 calls a couple of months out or hang on to see if the options expire worthless and keep all the premium then buy the stock back on a dip for an OTM covered call.
Also looking at ARAY since it has pulled back to the 5.60 range. I recommend selling Mar 5 puts last month then the stock jumped and the premiums fell. Was looking for a .50 premium. I like ARAY for selling puts since the stock has maintained an average $5 base since I have been watching it. Even if it gets put to you just wait a week and sell it over 5...
Happy Trading...
No comments:
Post a Comment