STO (5) Naked Put - NAT June 09 @ $30 for $1.65 each. Net Premium $821. I watched an invterview with the CEO of NAT today and I was impressed. He is very focused on dividends. They are in a very strong position in this week market because they have alot of cash on hand and virtually NO debt.
Sometimes a bad economy allows the "cream to migrate to the top" and I think NAT is a perfect example of this.
This is a 5.5% premium with 25% downside protection (net of the premium).
Monthly Options Expiration Results through May 17th, 2024
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Each month after the monthly options expiration date, this summary report
provides the results on all positions that have been closed out during the
past m...
15 hours ago
Hi Chris,
ReplyDeleteI just found you at Dr. Joe site today. Thanks for sharing your trades. I was wondering if you have tried Leap Covered Call. The difference is, I think, less required capital. Of course, the big challenge is which stock/leap to use. I haven't done much covered call trading but hope to start doing it.
Finally, I am also think about to buy a rental property to become a landlord. what is your thoughts on that comparing to doing covered call trading. I want to buy a rental home because it seems I always end up losing money in the stcok market. So that is a safer way to invest my money.
Thanks very much,
Mike
Mike, I have never tried Leap Covered Calls. I like to stay as conservative as possible so these are the only options I trade. In the past I too have found that as soon as I pick a stock I lose money and that is why I like covered calls. Usually 1) I get downside price protection and 2) even if the stock does I down I can keep writing calls and making monthly income on the stock.
ReplyDeleteIt is hard to make money in landlording unless you are big enough to have full time help (a handy man and an assistant). Be ready to hear every tenants problems and be ready to hear them at all hours of the day. This is why I like CCs better. MUCH less hassle! I looking forward to hearing more from you as you start do Covered Calls. I think once you start doing them more and seeing all the options with them (excuse the pun) you will like them.
Chris - Do you know the site www.compundingstockearning.com. That is the site specifically for covered calls & DLS. Naked put and covered call have the same risk profile:limited profit and unlimited risk. But if you just do naked puts/covered call on stock you don't mind to own, then it's fine. All this works well in the level or up trending market. But still difficult in the down market. I gave up option trading a couple of years ago. Too time consuming. That's why I am trying to put some hard earned money into real state. May not the best idea based on what you told me. Anyway, I will keep trying to figure out a way for somewaht safe investment.
ReplyDeleteI will read your blogs frequently. Keep the good stuff coming.
Best,
Mike