Hi Lee,
I always appreciate your market insight. Thanks so much for taking the time to post it here.
I'd forgotten that NTAP reports on Thursday, to tell you the truth. This is a tricky situation, IMO, as it's been so weak lately that I'd think that anything but a horrific earnings report would at least stabilize the stock, if not provide a bounce. But I've looked at the chart and I can't see any good support until it's in the twenties, which would worry me if the next leg in the Naz is down.
I think you're wise to sell the 40's instead of the 45's on it. The nice thing about buy-writes is that if the stock continues to slide, you can buy back the calls as the premium drains down to the $1 area and sell at a lower strike. I did this last week on SEBL: I bought at 69 and wrote the 70 calls. The stock slid to 63 and I bought back the calls yesterday ( locking in a $4 profit per contract) and sold the 65 calls for $5. I'm covered down to $60, will be called out if SEBL's over $65 at expiry. Not exciting, but, in this market, it's not bad.
Good luck today, Hon. |
