Recent content by maw

Here's the situation: I have 1100 shares of MDT. I've been writing covered calls on this stock off and on for the past few years, say 4-6 times per year. I seek to get $1 per share, strike price $2-3 above current price, 1-2 months out. I usually wait for expiration and then start...

longterminator: I won't enter the $43 stop-loss-sell unless my shares get assigned. However, I sense I might be missing something here. riskfree...: I am trying to learn. And you're right that the only profitable thing about this stock (over the past few years) is the call selling I've...

That's a good point. And I would lose money under that scenario. But it is defined, isn't it? If I sell $45 puts for $1 and the price falls and I get exercised. Then, I set a stop loss (sell) at $43, and this trade gets executed. Haven't I only lost $1/share? $2 on the trade (45-43), but...

I am by no measure a sophisticated options investor. I am an engineer though, so I know that those greek letters refer to some kind of variables which mean something to somebody. Anyway, I own 1100 shares of MDT (Medtronic). I few years ago I discovered covered calls. Since then I've been...