Monday, March 5, 2012

A Look At Covered Calls March 5 Update

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).


A couple of our sold calls have very little extrinsic value left after some downward movement in the stocks, so time to roll down and pick up some more extrinsic.

With FCX trading at 40.01, I bought back the March 44 calls for 15c and sold the March 40 calls for $1.20.

With NOV trading at $79.52, I bought back the March 85 calls for 27c and sold the March 80 for $1.52.

No action on GS.

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