| | | OB,
I've been selling covered calls on a portion of my holdings (never more than a 1/3, usually much less) for a long while. able to add to my shares as price dropped, but I've given back shares since the fall on recent rise. not for everyone but fits my situation.
example: sold some may $23 a month or more back when stock was below 20. rolled them to august $26 a week or so ago on rise, got almost $4 a share for my trouble. currently fidelity it showing 3.40 to $6 for bid/ask.
February $26 calls are paying 45 cents a share.
as mentioned, not for everyone. if unfamiliar read up on covered calls, overhyped in many places as a source of income but it's a conservative way to take some profits on stock you are confident holding...looks now as there's very good chance price in august will be over 26. that's ok with me...I still have good position and may either roll it forward or take cash and diversify a bit.
if you're conservative or could use the cash look into it. if you're hoping for a home run, or can't handle the risk of holding through yet another drop, maybe not. imho, this stock and the metal looks like it is in a secular bull, so make sure you won't be kicking yourself if it really takes off....
glta longs |
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