I was flat out busy today folks!
KO... I've made more than $100 on nothing but selling covered calls against my shares in the last week! That's a 1.25% return on my $8,400 of KO for doing NOTHING but owning the stock. If you guys aren't selling calls against your positions, you're missing out on FREE money! This strategy works best on slow moving, dividend paying blue-chip stocks like KO.
On to WFM... I went ahead and closed out my August 36/35 credit put spread for a small $60 profit. Thank goodness I did! Looks like WFM has reaffirmed it's already disappointing guidance. The stock is down in after hours trading. I'm already getting CRUSHED in AFL, HSY and KO... I just didn't need anymore crap to deal with, so that's why I took profits in WFM.
TWTR... Let me tell you folks, there's a lesson here in patience - but I'll get to that in another post. For now though, I closed out my naked put for a $135 gain, and more importantly freed up $4,400 of buying power!!
Then I turned right back around and set up an August 47/46 put spread, collecting a $440 credit on 10 contracts, only tying up $560 of buying power! Look people, 110 million shares just traded hands today! I think after consolidating at these levels for a few trading days we head higher. That's why I played this one as an August monthly trade instead of a weekly. It needs time to establish and prepare for the next leg up.
Anyway, those are my moves today!
For all you folks out there finding this blog for the time, I'm the Option Rider. I play with a wide open hand, for better or for worse! Please feel free to look through my open positions, my winners, AND my losers. Any advice, thoughts, comments or helpful tips are welcomed at firstname.lastname@example.org.