The best part of DITM c-calls in this environment is that I get paid for having Insurance, rather than paying for Puts. Today, after SELLING puts on IP for $200, I did a buy/write to July with a $29 safety net. Ex-D is Monday, Feb.13. I also rolled out my KKR calls - it goes ex-D Feb.15 so I did not want it to get called away at $15 - It is at 15 right now, so I sold the June 14 strike. Although earnings disappointed (duh), they increased their dividend to 8% (if it holds through the 2nd dividend)-first one of $.32 is declared! Extrinsic call premium is $.40.
I still think the market is due for a selloff - because of my sentiment indicators: http://mktsentiment.blogspot.com. despite Larry Fink of Blackrock's 100% exposure for everyone statement this week.
DITM is somewhere in between Buy & Hold and Day Trading. I think I may call it the HUMMINGBIRD STRATEGY - get in just before the flower is blossoming, then get out before it dies out.
One more PLUS for the Home Team: I just got a note from my broker that MLPs (Ltd.Ptnrs) are TAXABLE in an IRA - what next?
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