Our fearless, intrepid investor spent two weeks sailing on a 42-foot catamaran in the British Virgin Islands with no internet connection. Knowing this would be the case, she wrote covered calls on SPY, strike price $10.00 out of the money, expiry date three weeks away instead of her usual one week away. (SPY C 18NOV22 396.00)
She did lose $US10,990.00 in her “fun” portfolio over one year, writing just out-of-the-money covered calls on Novavax (NVAX) on Mondays, expiry dates on Fridays of the same week.
What she learned from her NVAX experience is to write (sell) covered calls sufficiently out-of-the-money to earn about 1% per month or slightly more. That would significantly reduce the possibility of being assigned!
Using that approach, she has done well, being assigned occasionally, like the BVI case you see above.
What will did she do when the NYSE opened at 9:30 AM today?YOU NEED TO LOGIN TO VIEW THE REST OF THE CONTENT OR LEAVE A COMMENT. Please Login. Not a Member? You can now sign up for $12 for a one-year membership. Join Us