DHR may roll over a little bit here so I had a 3% profit and decided to sell some deep in-the-money calls at $40. I garnered a $23.20 premium. Not bad for 5 days worth of work since the options expire this coming Friday.
Buying more SA at $20.75 has also paid off. I sold some May $25 calls for $0.30. Not much, but it is still money in the pocket.
Did you buy soem more SLV near $12.73? I did and have been rewarded. There may be a pivot showing up as of 5/11/2009. Selling some covered calls may be appropriate.
Monday, May 11, 2009
Monday, May 04, 2009
SA, SLV AND GLD ARE NEARING BUY POINTS. NEW STOCK DHR ADDED TODAY AT $59.90
I bought more SA shares today at $20.75 due to my indicator crossing over and showing a buy signal a few days ago. The $20 mark appears to be acting as good support and this stock should be rising soon.
I have also bought into a new stock with the symbol DHR. The stock has been beaten down in the past few years and as of today it is above its 200 day moving average and my indicator showed a buy sign on 4/22/2009. I got in at $59.90. The stock has put in higher lows and higher highs denoting a possible new uptrend. I hope to ride this one out.
SLV is also in a buy area. Buying near $12.73 is going to offer you the best chance of making some money. Since I also hold covered calls on the shares I already own, this means I need to roll the May contracts out to June.
5/4/2009
Buy to Close 10 contracts +SLVEL May $12 call @ $0.93
Sell to Open 10 contracts +SLVFL June $12 call @ $1.20
This reduces my overall cost by $0.135 ($1.20 - $0.93 = $0.27. Have 20 contracts so this is 1/2 of my total contracts. Hence $0.27 x 0.5 = $0.135)
Cost basis ($11.64) = ($11.775) - $0.135
GLD is getting ready to cross on my buy signal so I am not pulling the trigger until I officially get that signal. Patience is a virtue.
I have also bought into a new stock with the symbol DHR. The stock has been beaten down in the past few years and as of today it is above its 200 day moving average and my indicator showed a buy sign on 4/22/2009. I got in at $59.90. The stock has put in higher lows and higher highs denoting a possible new uptrend. I hope to ride this one out.
SLV is also in a buy area. Buying near $12.73 is going to offer you the best chance of making some money. Since I also hold covered calls on the shares I already own, this means I need to roll the May contracts out to June.
5/4/2009
Buy to Close 10 contracts +SLVEL May $12 call @ $0.93
Sell to Open 10 contracts +SLVFL June $12 call @ $1.20
This reduces my overall cost by $0.135 ($1.20 - $0.93 = $0.27. Have 20 contracts so this is 1/2 of my total contracts. Hence $0.27 x 0.5 = $0.135)
Cost basis ($11.64) = ($11.775) - $0.135
GLD is getting ready to cross on my buy signal so I am not pulling the trigger until I officially get that signal. Patience is a virtue.
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