rruff,
I'm in the same situation as you (lots of legacy XOM in the family). I had been writing CCs on the shares successfully for years, but yes, when oil ran up sharply in the past year I've gotten underwater on them. I have been able to roll out a LONG TIME (a year+) to keep the shares and at least come close to breaking even on the premiums (which are very low, BTW). But it will take another year, with oil calming down, to "right the ship". I would just let the shares get called and buy them back, but the cost basis is very low and it would create a tax mess for everyone, so I've been juggling the roll outs. It keeps me busy on expiration Fridays! Given the low premiums for XOM, it's probably been more trouble than it's worth. BRCM, CSCO, DELL, etc have generated a lot more CC income, because of fatter premiums. |
