Tom,
Yes, the premiums are OK, but VECO was giving about 10% a month for ATM options. That's basically what I shoot for. I do well on premiums with MU and CCRD also. I played RMBS for its premiums, but that one got a little scary even for me.
I sell my covered options in increments, so that I lock in some gains, but have other stock to appreciate. With VECO's rapid and large rise, I've been selling the 30, 35, 40, and 45 series. I'll be out of uncovered stock when we hit 50. I am actually hoping for a pullback to the 35 or 40 range.
I got assigned on 1 contract last night on VECO. I have never been assigned before expiry before. Can't understand why anyone who was long an Nov 30 would exercise their option rather than just sell it back on the open market.
Of course, Schwab now gets an extra commission on me for this extra sell. They're probably screwing me. I got screwed on a BB stock this morning. Put the order in to sell at market; 6 minutes later it executed and cost me $560 in gains, as the price had dropped from 5 3/16 to 4 5/8.
Mark |
