Nope, I never did it
Mike, that is interesting because I had read about deep-in-the-money buy/writes on an option site and then saw your posts about it and after some research, started buying them around April 1. I've accumulated about 20 positions, mainly in large caps like UPS,LLY,COP,AXP with good financials and decent divvies.
You are so right that the time to buy them is pretty much gone. It's all about time premium and that has gone down a lot with the reduced volatility.
I'm very happy with the ones I did get. I'd appreciate your opinion of these numbers which are for Jan 11 leaps.
I captured an average of 13% of the strike in time premium. 10% was my lower limit. I legged in on virtually all of them, stock on weakness, peddle the calls on strength.
They have gone up a lot and, with the clarity of hindsight, I would have done better just buying the damn stocks but who knew?
I'm averaged in 31% above the strike and 39% from breakeven.
The divvies went from 4.13% to 5.93%.
The total gain to expiration is approx 24% and about 17% annually.
I don't really follow them closely. Who cares if a stock that is 10-15 dollars in the money bounces around a couple of bucks? It's just noise.
Anyway, Mike, thanks for a great idea.
John |
