I’ve been sitting on my 100 FEZ shares since my last FEZ covered call expired nearly 11 months ago. I’ve been in and out of it in my other account and never could get around to making a trade on it in this account. The main reason is that I wanted to wait for better pricing. I didn’t feel I needed to make a trade and blog about it for an ETF that was only 4% of my account. In hindsight, I should’ve made a few trades on price spikes, even if the timing wasn’t ideal. Today, I decided FEZ had improved enough and it was time to take some profits or at least reduce my cost per share and hold on if FEZ … [Read More...]

I’ve been sitting on too much cash since the last monthly options expiration and finally decided to put some of that cash to work today. I didn’t like much of what I could see available in the options world while volatility is so low. Eventually, I opted for a naked put on the small-cap ETF, IWM, since I have 100 shares long already with a covered call. I figured that if my call is assigned, my put will finish worthless and vice versa. While IWM was trading at $161.85, I sold one IWM January $160 naked put for $2.88 and received $287.40 after paying $0.60 in commission. The IWM January covered call I already had in place is for the $164 strike, so I basically … [Read More...]