Comments for My Covered Call Blog» My Covered Call Blog http://coveredcalls.rickdahl.com Playing the market using covered calls Wed, 10 Mar 2010 05:18:31 +0000 http://wordpress.org/?v=2.6.5 Comment on Un-Hedging by admin http://coveredcalls.rickdahl.com/2009/03/02/un-hedging/#comment-20 admin Mon, 09 Mar 2009 20:13:17 +0000 http://coveredcalls.rickdahl.com/?p=158#comment-20 Jeff, The way I calculate my cost basis is not by reducing it by the option premium I gain each month. That is the way I originally did it but then switched to a more complicated approach. Since I expect the buy/write to be called away in one month, my cost basis is the original buy price minus the first month option price. Any subsequent months that I hold and sell options, that money just goes on the top line. My reasoning for this is that I view my cost basis as my initial risk and by using the buy/write, I limit my risk in that first transaction. Jeff,
The way I calculate my cost basis is not by reducing it by the option premium I gain each month. That is the way I originally did it but then switched to a more complicated approach. Since I expect the buy/write to be called away in one month, my cost basis is the original buy price minus the first month option price. Any subsequent months that I hold and sell options, that money just goes on the top line. My reasoning for this is that I view my cost basis as my initial risk and by using the buy/write, I limit my risk in that first transaction.

]]> Comment on Un-Hedging by Jeff http://coveredcalls.rickdahl.com/2009/03/02/un-hedging/#comment-18 Jeff Sat, 07 Mar 2009 11:31:21 +0000 http://coveredcalls.rickdahl.com/?p=158#comment-18 Rick, I was analyzing you USO trade (looks good right now) and had a few comments. I picked that one out because I just jumped into this one on Friday. In you Open Positions section, it seems you return calculation is not correct. With a cost basis of 24.46, your return should be 10.3% on a 27 call. Also, on your open positions page, I would suggest that you show your return based on the current cost basis against the current strike price - it would look a lot better. I started a blog a few weeks ago and you are right; it really helps me to be more disciplined and follow my trade plan since hundreds of people will be analyzing my every move - maybe. Anyway, good luck and you can email me if you wish. Jeff Rick,
I was analyzing you USO trade (looks good right now) and had a few comments. I picked that one out because I just jumped into this one on Friday. In you Open Positions section, it seems you return calculation is not correct. With a cost basis of 24.46, your return should be 10.3% on a 27 call. Also, on your open positions page, I would suggest that you show your return based on the current cost basis against the current strike price - it would look a lot better.
I started a blog a few weeks ago and you are right; it really helps me to be more disciplined and follow my trade plan since hundreds of people will be analyzing my every move - maybe.
Anyway, good luck and you can email me if you wish.
Jeff

]]> Comment on Current Holdings by Covered Calls » Blog Archive » February Expiration Wrap Up http://coveredcalls.rickdahl.com/current-holdings/#comment-16 Covered Calls » Blog Archive » February Expiration Wrap Up Mon, 23 Feb 2009 04:31:04 +0000 http://coveredcalls.rickdahl.com/?page_id=142#comment-16 [...] Current Holdings [...] [...] Current Holdings [...]

]]> Comment on Historical Performance by Covered Calls » Blog Archive » Current Holdings http://coveredcalls.rickdahl.com/historical-performance/#comment-15 Covered Calls » Blog Archive » Current Holdings Fri, 20 Feb 2009 18:49:31 +0000 http://coveredcalls.rickdahl.com/?page_id=140#comment-15 [...] Historical Performance [...] [...] Historical Performance [...]

]]> Comment on Historical Performance by Covered Calls » Blog Archive » Historical Performance http://coveredcalls.rickdahl.com/historical-performance/#comment-14 Covered Calls » Blog Archive » Historical Performance Mon, 16 Feb 2009 22:46:13 +0000 http://coveredcalls.rickdahl.com/?page_id=140#comment-14 [...] Historical Performance [...] [...] Historical Performance [...]

]]> Comment on EEM - Update Position by Premium Collector http://coveredcalls.rickdahl.com/2009/01/26/eem-update-position/#comment-11 Premium Collector Wed, 28 Jan 2009 02:06:27 +0000 http://coveredcalls.rickdahl.com/?p=106#comment-11 I like your site as well as your trades. I'm adding you to my blog list so I can follow what you do. Good luck. http://optionpremiumcollector.blogspot.com/ I like your site as well as your trades. I’m adding you to my blog list so I can follow what you do. Good luck.

http://optionpremiumcollector.blogspot.com/

]]> Comment on USO - Open Position by admin http://coveredcalls.rickdahl.com/2009/01/02/uso-open-position-2/#comment-10 admin Sun, 11 Jan 2009 06:19:43 +0000 http://coveredcalls.rickdahl.com/?p=61#comment-10 I don't want to hold anything more than one month if possible. That's why I sell in the money strikes. What I meant was that should oil drop the 15-20% needed to fall below my strike, I would be ok with holding oil for a while. I think oil will stay between 30-40 for a while. Oil also can't go out of business so if it does fall to $20, it will come back. It may take a long time but oil should come back and as long as I can keep my annual return around 20-25% on this position, I will be happy. I don’t want to hold anything more than one month if possible. That’s why I sell in the money strikes. What I meant was that should oil drop the 15-20% needed to fall below my strike, I would be ok with holding oil for a while. I think oil will stay between 30-40 for a while. Oil also can’t go out of business so if it does fall to $20, it will come back. It may take a long time but oil should come back and as long as I can keep my annual return around 20-25% on this position, I will be happy.

]]> Comment on USO - Open Position by Robert Nicholson http://coveredcalls.rickdahl.com/2009/01/02/uso-open-position-2/#comment-9 Robert Nicholson Sun, 11 Jan 2009 03:19:53 +0000 http://coveredcalls.rickdahl.com/?p=61#comment-9 If you want to hold the stock why are you selling a strike that's already in the money? If you want to hold the stock why are you selling a strike that’s already in the money?

]]> Comment on UYG - Position Update by RON http://coveredcalls.rickdahl.com/2009/01/06/uyg-position-update/#comment-7 RON Wed, 07 Jan 2009 00:11:08 +0000 http://coveredcalls.rickdahl.com/?p=83#comment-7 You seem like a sincere young man ... So here's a UYG Suggestion. AT $5 and Below ... the UYG is a GIFT! If you need an eplanation ... no need to continue! This is a Covered Call / Put Strategy! The aim is to acquire as much UYG stock (within described ratio) as you can ... while the stock is rangebound at $4 - $9. For every 100 shares of UYG bought @ $6 ... Sell 1.25 (125 shrs) +UUFCH MAR8C @ 50 cents. Sell 0.50 (050 shrs) J,F,M 6-9 Puts @ $0.40 - $3.50 If the stock goes up ... you win ... even if you have to buy back some naked calls. If it goes down or hopefully stays the same month after month ... you use the call & put premiums ($$$) to build a monster UYG position for 2010 - 2012 when the UYG will be at least $50.00 GOOD LUCK ... Ron You seem like a sincere young man …
So here’s a UYG Suggestion.

AT $5 and Below … the UYG is a GIFT!

If you need an eplanation … no need to continue!

This is a Covered Call / Put Strategy!

The aim is to acquire as much UYG stock
(within described ratio) as you can …
while the stock is rangebound at $4 - $9.

For every 100 shares of UYG bought @ $6 …

Sell 1.25 (125 shrs) +UUFCH MAR8C @ 50 cents.
Sell 0.50 (050 shrs) J,F,M 6-9 Puts @
$0.40 - $3.50

If the stock goes up … you win …
even if you have to buy back some naked calls.

If it goes down or hopefully stays the same
month after month …
you use the call & put premiums ($$$)
to build a monster UYG position for
2010 - 2012 when the UYG will be at least $50.00

GOOD LUCK … Ron

]]> Comment on Cash and Hedging by Susan Kishner http://coveredcalls.rickdahl.com/2009/01/06/cash-and-hedging/#comment-6 Susan Kishner Tue, 06 Jan 2009 18:34:26 +0000 http://coveredcalls.rickdahl.com/?p=75#comment-6 Great Blog post. I am going to bookmark and read more often. I love the Blog template … if you need any assistance customizing it let me know! Great Blog post. I am going to bookmark and read more often. I love the Blog template … if you need any assistance customizing it let me know!

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