Making 1%/week selling covered calls

Quote from TraderZones:

grasping at straws

straw_mouth.jpg
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This could be a fun game!


What about BLDP?

What about PRKR?

What about MRGE?

What about FCEL?

etc
etc
 
Quote from dmo:

FWIW, AMD made Audit Integrity's list of the 20 companies most likely to go bankrupt in the next year. http://www.auditintegrity.com/assets/files/newsroom/2009/AI Press 2009-0917 Seeking alpha.pdf
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DMO, an unrelated question. Is my understanding correct that borrow charges are from settlement to settlement rather than trade date to trade date? Since borrow fees are based on calendar days, I'm considering the possibility that some high borrow rate situations would be less desirable W-F since the weekend intervenes. Any thoughts?
 
This thread needs to end now. Go ahead and buy Sprint, AMD, and BAC. When you buy them, they will begin going up, and then you can sell them. You will be soooo rich. I'm glad that when you have this whim of which stocks to trade for such a certain profit, that it's your money you are investing and not mine.
 
Quote from spindr0:

DMO, an unrelated question. Is my understanding correct that borrow charges are from settlement to settlement rather than trade date to trade date? Since borrow fees are based on calendar days, I'm considering the possibility that some high borrow rate situations would be less desirable W-F since the weekend intervenes. Any thoughts?
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I think you're right about settle-to-settle Spin, at least that's the way IB does it. That's a good observation and for a very short-term play that could be a consideration. But since you can't even know exactly what your borrow costs are going to be - and it's pretty certain they'll wipe out whatever edge you think you're getting from the hard-to-borrow situation (and more) - I avoid them entirely. Which makes it tough because it seems EVERYTHING is hard-to-borrow these days. The absence of such garbage is one of the nice things about options on futures.
 
DMO, thanks for the feedback.

I have no problem with the edge side... have that under control.

If the borrow charges include the weekend then that could be a deciding factor when I'm on the verge of closing a short position. And yes, this would be for my very short term plays.

Just looking to maximize my 1% per week :D
 
Try it small first just to see how they handle it. I wouldn't put it past any firm to try and squeeze out a little extra $$ by finding some way to include the weekend.
 
I would take the opposite view - I'd be surprised if any firm didn't take advantage of their customer. I can't imagine that borrow charges would be calculated on trading rather than calendar days but what do I know (g)? Will try it small. Thx
 
Quote from DarkProtoman:

I've just set up my trading account, and I'd like to start by selling covered calls.

What criteria do you use to evaluate a stock's suitability for this strategy? I'm thinking BAC.

My goal is to make 1%/week.

Thanks.
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Stock criteria? Buy stocks that don't decline in price.

That's the key to writing covered calls successfully. Nothing else matters.

Mark
 
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