CLOSING the Options Action Trade - $UAL - scott

20 july - covered call worked as designed, stock closing under 22 today and you get to keep the entire covered call premium..lowering your cost base going forward. you can see how quickly things can change.. monday youre thinking your shares are getting called away, then 4down days in a row your keeping the shares and calls expiring at max profit.

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29jun - with stock at 24ish this trade on track to be a winner..anything above 22 at opex will be max profit. dont see this trade too often but can be really juicy of you pick the right stocks and you are ok with your shares getting called away every month.

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12 jun - scott hitting the fast money options action desk again tonight with a not very common trade, selling a covered call that is in the money, here is video video . he explains is well.. this is essentially if you are long the stock and are ok getting your stock called away a bit higher, this is in order to get some of your money back if you are down and/or give you better downside hedge if it does not close above the strike price at opex. would not be in the airline space at all.. no way no how.

Sell the July 22 covered call at $1.60

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all of scotts on-air trade in a google docs spreadsheet