Don't know about NNC. I'm trading in the USA.
I bought NN for 21 and change, sold MAR 22.5 covered calls
for 1 3/8, so I effectively got the stock for about $20.
If it goes above $22.5 and they get called away,fine!
I've still made over 10% in a little less than a month.
If I could do that 75% of the time, I could retire in a couple of years.
It NN drops below $20, at least I've cut my losses and I'll
sell another covered call next month. I only started doing covered
calls a few months ago and so far I've been making money.
I like to get at least $1.00 per share on a short term call, so there's always a risk of being called away.One example is NSCP. I bought at 16 3/4, sold a FEB 17 1/2 call for 1+. NSCP is now about 22, so I'm almost certainly going to lose those shares next week, but I've still made 10%+ in just a few weeks.
My portfolio is up over 10% this year, compared to a 20+% drop in the last quarter of last year, this is very nice.I might even get back up to my old highs in a month or two. I hope I'm not being "irrationally exuberant"!
As always, this is not investment advice, just some personal anecdotes and my humble opinion. |
