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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives
SPY 677.58-2.0%Jan 20 4:00 PM EST
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To: GROUND ZERO™ who wrote (54080)8/28/2013 1:59:23 PM
From: Machaon  Read Replies (1) of 222132
 
Thank you for your generous and thoughtful comments, I appreciate them...
Just wanted you to know how much I appreciate, and learn from your posts.

I did write calls on all my long gold and silver positions this morning ... I'm very satisfied with the gains right now...
Arghhh! You had to do that to me! Causing me to think! Not fair!

So...... what I did...... was to study covered calls for the past few hours. I've never written or sold a covered call before. I practiced making the trades and even tried to sell more call options than I owned, just to double check my understanding.

Your words echoed thru my elderly, pill diminished noggin and I agreed with you that I was also very satisfied with my gain. I decided that I would lock in profits, and make a little extra on the covered call, and not care if SLV did rally up to $30 without me!

So..... I sold the Sept 21st, in the money $21 SLV calls for $2.70, which produced about a net $0.15 in an extra gain. $0.15 is not much, but it is better than just cashing in the stock. In a way, I figured that I was getting paid $0.15 to sell my shares, so to speak. Plus... if silver does decide to take a big squat, which is not unlike the volatile metals, it would allow me to buy back the options at a much cheaper price.
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