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JLS

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Alias Born 12/14/2004

JLS

Re: Zilla post# 4628

Friday, 04/26/2019 5:58:59 PM

Friday, April 26, 2019 5:58:59 PM

Post# of 4994
"just trade this puppy all year long"

Good idea.

In fact I did that 2-to-3 years ago (when BHC was called VRX). Did Buy-Writes: buy shares, sell the Calls -- a Covered-Call (CC) trade. Wash, rinse, repeat.

Since sectors XBI (Biotech) and XPH (Healthcare) have both sold off since September of last year, then only came partway back, then most recently reversed downward earlier this month and bottomed again, I decided it was time for me to trade these things again (through BCH) using CCs.

So this morning I filled my little red wagon with BHC shares at $23.77-ish and sold May 3'19 $24 Calls for $0.40. Next week I could trade that strike a couple times to enhance the income from those options. If assigned -- repeat the process during the next week of buying shares then selling Calls. If not assigned, pick a time then sell more Calls that expire during the same week.

Recently TEVA is in the news a lot. You may have seen news articles about TEVA and relating it to VRX (now BHC) -- because they both had the same merger/spending/debt/refinance/revival problems and fixes. I bring this up because I'm only trading two symbols now, and my largest investment (in terms of shares, not dollars) is in TEVA.

Diversification? That's a good way to average-down your income.
Volume:
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Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y
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