17aug - with stock at 216 today this trade will be a "win".. with your stock getting called away at an effective price of $194 if you are still holding this trade and are not going to take some action. still would rather do a series of front month calls vs going out 3months when selling calls.
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30 may - mike has a covered call trade on CF on show tonight, here is the video clip . i like the concept of a covered call as much as the next guy but as usual i dont care for mikes timeframe..
Sell the Aug185 call for $9 ($900) per contract
Going out 3months on short calls is not my thing, essentially locking up your position for that time.. not getting much time decay right now because its that far out. Also earnings look to be in early Aug so that call will remain elevated right up to earnings.. negating the time decay till then.. if you had your heart set on that 185 strike level, i would first sell the July 185 for about $6 ($600).. so going out 30more days would only net you another $300 in premium... after July opex i would revaluate where the stock is and my thesis going forward with earnings.. if stock is below 185, then i keep the full $600, and can resell an Aug short call taking advantage of the high premiums because of earnings that month.. bottom line i dont see the advantage of going that far out... using that logic, why not go out to Nov opex and sell 185strike for $15ish... plenty of trades you can make between now and Aug opex... as in short calls, ratio spreads to position for upside, collars..etc.. no need to lock up the position for 3months unless that 5% is what your after.
mikes on-air trades in a google docs spreadsheet
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