Saturday, January 28, 2012

A Look At Covered Calls - GS On A Tear

This is an update of my A Look at Covered Calls - The Naked Truth project. A hypothetical portfolio of systematic covered call writing (AKA synthetic naked put writing).


I have another adjustment for GS placed on the Friday 27th. Essentially Goldman is on a tear and rocketed up the the next strike,trading at . This means we can pick up some more extrinsic at $111.81.

The 105 call we wrote at $4.45 I bought back for $7.85 once again taking a hit on intrinsic value of the option, even though we've made some on the extrinsic. Chalk up another situation where we would have been better off with just the stock (so far).

I've noshed up a spreadsheet to keep track:

No action on NOV or FCX

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