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Strategies & Market Trends : Option Strategies -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (2322)	3/10/2022 3:46:15 PM
From: robert b furman	1 Recommendation Recommended By Thehammer Read Replies (1) \| Respond to of 2591

Back in mid 2019 I sold 35 puts on CVX at the strike price of $100.00 for a $6.50 premium. The puts went out in time almost 18 months and expired on January 2021. So i had to buy 3500 shares at a net cost of $93.50. ( A good deal I had saved for) Wasn't so sure when CVX hit 51.00 in between expiration Now that CVX is advanced substantially I'm trying to tap some covered call premium, but really do not want to have the stock called. I'm planning on selling some covered calls in price spikes and only for the very short term in duration. This morning CVX popped up to 174.76 and I was able to sell the March 18 2022 210's for 19 cents. I'm hoping to be able to do this once a month and try to harvest 18 to 22 cents each month on what ever strike price has volume in trading and hopefully will not result in them being called.. I thought the pandemic was a once in a life time event that allowed great balance sheet E&P stocks to be bought below their real value. This is an attempt to boost the yield a bit but more importantly keep the shares which are yielding 6.07%. The hope is to get 12 moths worth of 19 cents premium or $2.28 in premium. I don't want to tie up those shares for more than 10 days before the expiration date. $2.28/93.5 . Most likely won't get that monthly as it will need to pop at close to the expiration date. So the goal is to keep the stock and collect the $5680 dividend plus the covered call premium target of $2,280 in put premium. If accomplished it would generate $7,960 / $93,500 = 8.51% yield. First time I've ever sold covered calls for the short term. Trying to learn here and thought I'd share the idea and performance. If they get called, I'm buying a contender and going fishing! <smile> contenderboats.com Any thoughts are greatly appreciated as these are new waters for me. Bob