SMOKIN': Lorillard (LO)is a tobacco company which I did a DITM ( Do It To Me) last July, by selling a put ATM (at the $$). The stock went virtually nowhere until this month when it screamed upwards. Since July it is now up 18%.
Yesterday my position was called away - it had risen way higher than I could roll it, even if I wanted to. My return (as compared to the 18% if I just owned the stock): 16%, with a high degree of safety! The 105 call.
The intent of this blog is to explain and exhibit the Deep-In-The-Money covered call strategy, with actual trading results and updates as they occur in the author's accounts. The strategy is the subject of the author's recent 2010 book published by Amazon entitled Zero (IN)Tolerance ($14.95), a must for those "FED" up with zero interest rate returns. It is also possible to obtain the updated eBook through all eReaders except Kindle -$8.95:https://www.smashwords.com/books/view/76362
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Can you explain your method for selecting you ditm call candidates.
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