Wednesday, August 24, 2011

POST-EXPIRY, AND PRE-VACATION:

As of last Saturday's option expiration much happened in this volatile market - mostly good: Two LO puts that I had sold to take on the stock before ex-D, expired worthless, netting $240 (ex-D next week); MAT was put to me and I sold some nice 26 calls on them. One of my 3 plungers - DIA - was put to me at 122, so I'll wait on a rebound to sell a call, taking in monthly dividends - a positive.
In this 20% decline only 2 of my 22 stocks plunged - NOC and TOT - so I'll just collect the larger % dividends while I wait as with DIA. Remaining stocks are just above or below water.
Fine-tuning: since MAT was put above the current price (as with the DIA) I wrote calls ABOVE, not the usual DITM below. Any stock that plummets much lower than the market, such as my last (and only) stock losses of 1 1/2 years ago - BP and UVV deserves to be sold. Since there have never been more than two Bear markets in a decade since 1900 (or less than one) let us hope this is one and it is mostly over.
KEEP THE BABY, FAITH!

No comments:

Post a Comment