Replies to post #135983 on Biotech Values

[poorgradstudent]

I agree likely VERY profitable - especially if the calls had any significant volatility priced into them. Although I don't see why last week anyone would have exercised calls that were out of the money.

I read your post and starting thinking wtf is he talking about?

I made a huge typo in my post. The share price was flirting with 9 when I sold them, and I was trying hard to sell 10s but that wasn't happening. I was also pretty sure the price wasn't going to stay up there, so I sold in-the-money 7.5s. I'm very sorry for the confusion there... i must have still had 10 on the brain.

I basically got sold out at about 9.75 for that lot (had a couple of prior sales), and will be effectively sold out at a bit under a dollar over the buyout price for the rest.

Sorry again for the confusion.

As for how profitable / not profitable covered call sales have been, I guess everyone's experience will vary. Personally it doesn't bother me to admit that I've made trades that were not profitable / did not yield the maximum possible profit on the transaction. By and large, however, covered call sales have made me money.