David,
I've only been trading covered calls for less than a year. So I probably don't have a license either, but I have not gone a month without solid profits on net premiums. And in most cases, enough profit to pay for far-term puts to cover the downside of the underlying equity's value. That said, I'll offer my 2 cents: I think you may have gone too far out for such a close margin between your share cost and the strike price of the option. I have found that calls more than 60 days out have less downside volatility due to the longer time frame. With less downward movement, it makes it more difficult to buy the calls back and net a good premium. I have been sticking to near-term expiration options (30-60 days or less) and have been able to sell the calls and buy them back within days because the premiums seem to directly follow the underlying equity. Obviously, this does not work if the stock does nothing but go up. However, so far the stocks I own, even those that are trending up seem to do it in cycles (up 2, back 1 etc...) so I usually buy back the calls on the "back 1" day. I pay no transaction fees when I trade, so even if the premium net is less than a dollar a share, I may take it just to free up the position, secure the profit, and be able sell the calls again on the next upward movement. Your current options on AMSC are in the money now and the premiums reflect such. The good news is, AMSC has got a few more points to move before a call would occur. Also, I have never had anything called prior to the exp date. I guess if I were in your position, I would be patient for a down day and if the opportunity arose, buy the calls back, hopefully net a profit, and free up the position. Personally, I think having the opportunity to buy back and sell the calls again is worth more than the somewhat higher premiums farther-term options offer. I have mostly been doing this in the tech sector because the volatility is good. It is not unusual for me to be able to sell and buy back, more than once on the same stock within a week. --Good luck |
