Monday, July 2, 2007

Sold Jul 30 Call for WDC @ $.40


I have a long in the money position on WDC via a Jul 20 call. I do expect to generate a good profit from that position and I wouldn't mind selling at $30 (for a $10 profit per share, minus the premium).
So I figured that I could write a call to create a spread on my position.

I would like to do the same on TRADbut the higher strike price isn't too far out the money and I prefer to write call that won't be exercised.

I am starting to get a good fell on certain of my holdings and to be able to anticipate their near term move so I wish I had enough shares to cover a call writing on stock such asIRM or MSFT

As it isn't the case yet, I will stay out of trouble and avoid naked call writing for now.