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The OP probably wouldn't have posted if they read all the info on the forum involving covered calls. Basically identical threads just clutter the forum. In defense of the OP, searching the forum is tedious, and it's sometimes difficult to find the info you're looking for.

Lack of liquidity is a downside. You're generally locked into your position unless you want to take an additional loss. In an ideal world, you'd sell the call, and buy it back on the expiration friday. Here's a very realistic example of a non-ideal situation: Let's say you buy GE at 20...

I don't know who bought the other 27 though, sorry.

I bought all of them except for 27.

Ok, so on my Schedule D, how the heck will I declare this?

thanks, and my mistake. the 0.08 positive move would be the break-even point, that's what I meant.

?? Actually Citi would have to climb $0.08, or 1.07%, to be at the money.

I only write options, I don't buy them, but if you believe Citi may move in the next week and a half, the share price is 7.47 and the Jan 6.00 call option is selling at $1.55. That's only $.08 in time value for 8 business days. If you're bullish on Citi, You may want to consider it. And...

Thanks, that's all I needed. Answers here: http://search.cboe.com/scs/searchsite.aspx?query=dug+tyz

Please help me understand the consequences of these recent transactions, specifically if there are any changes to the impending -call away of my shares- in a week and a half. At my brokerage, I held 100 shares of the ultrashort oil ETF ticker: DUG. I also held 1 contract of DZGAA a $27...

thanks for the comments, if you take a second look at the history i gave, I actually bought another 200 shares on 11/17. Also, indeed I did not want these options to expire worthless, I buy them for downside protection, and my hope is to roll them out every month, unless the appreciation in...

...or selling high and then buying back low :-D

very true, I'll give the history on C despite it being the dog of my portfolio. 11/6 400 C at 12.03 11/6 -4 10 Nov call at 2.41 (.38 per share premium) 11/17 200 C at 9.28 11/17 - 2 Dec 7.50 call at 2.71 (.93 per share premium) 11/24 -4 Dec 7.50 call at .57 all these options expired...

If the option expired in the money, and I had the shares called away, I would have netted about 5% net gain from the position. C has fairly high options premiums.

I bought C this september with a deep in the money call. Instead of losing $3000 on 600 shares I've only lost about $1000 with the income from these past 3 months. My last $7.50 call expired so now I'm long on the stock without a call. Any investment is risky, but I think it's safe to say...

It's a general statement that's generally correct. A covered call is definitely less risky than a naked call. A covered put is definitely less risky than a naked put. A covered call on a stock is also less risky(downside risk) than being long on the stock without the call. It's Christmas...

The only options I write are covered calls... anyone else? It seems like we are slightly a different breed, taking less risk, seeking income instead of growth/speculation.

Iron Condors, in my opinion, are not worth it because of: way too many commissions, their win-a-little or lose-a-lot nature, which is somewhat related to the risk of any uncovered option position. When i speak of ITM strangles, I'm talking about selling a 40 call and a 50 put, for the same...

2 months ago I began selling strangles, similar to a straddle, with the options both being in the money. My results are so-so considering the high volatility, I am down about 5%. Any thoughts on this strategy? Comments from people using similar strategies? I've been investing in a...