These are my thoughts and opinions on many topics. My passions are the stock market and helping abandoned and orphaned animals. In this world, it seems most things don't make much sense to me anymore. This is my feeble attempt to share all of the above. The blogs will include items that might make you shake my head as well as give you my take on why they happen. Enjoy.

Wednesday, January 13, 2010

Stock Option Adventures

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.

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