Replies to post #136014 on Biotech Values

[Rocky3]

Have you[or anyone] ever sold covered calls or puts on those stocks that have weekly options expirations available?

My current "favorite" is FSLR (First Solar). It has weeklies with very narrow bid/ask spreads. And quite high volitility.

I got convinced that it was way over sold around 31. I was not convinced that it could not go lower. I bought some but was not willing to go in big way, so I started selling out-of-money puts too - at 28, then 33, then 38, etc). On the weeklies, I was looking for 1% and on the monthlies 5-6% (not as good as MNTA in its hay-day, but very acceptable).

The stock is very volatile (the options are correctly priced). I am happy with the results so far. I wanted ~1% per week on the options and I have gotten it. But I acknowledge I would have done much better being more straight long from 31 to 45. But I have some long so I have participated there too.

I think that it can easily go to >60, but since I also think that 30 is a possibilty (at which point I might buy more above the buys that I will have from the existing puts), I will not buy more outright now.

[HattieTheWitch]

Have you[or anyone] ever sold covered calls or puts on those stocks that have weekly options expirations available?

Yes, on quite a few.