I have recently opened myself into a world of new horizons with regards to stock trading.
Covered Call Options.
I finally did it. I completed my research and applied for Level 1 options trading.
It is quite interesting in that I have written a number of calls that are out of the money, that is I am allowing others to speculate that these stocks will end up going higher in the near future.
I have written calls a month out, that is February calls against the following stocks.
Altria (MO)- February 21 calls @ .36/contract
MGM Mirage (MGM) - February 12 calls @ .30/contract and February 13 calls @ .39/contract (written at different times)
Right now the MGM 12 calls ended up in the money. I am awating to see if the contract holder will exercise them. MGM closed at 12.39 today. I wrote the 12 calls when MGM screamed up from 9.10 to 10.40 in a couple of days.
It will be exciting to see how this works out.