I did/doing CoveredCall or CoveredStock using stocks that are below $10. Eventhough I was picking strong stocks and making approximately 10%, the dollar amount was small.
I am not worried about the commisions. TOS commisions are very affordable when compared to other well know brokers.
Now my aim is to get more dollar amount in the option sold (bcos time premium ofcourse). This means I need to look for stocks with higher sticker price. After much thinking and doing a reality check, I came to conclusion that I can afford only stocks < $45.
One stock which I found was TDSC. This is a fundamentally good stock. There is a very good reason it went from 17 to 45. The May 45 options had very good time premium. But by the time I put some time into the DD, it went from 43 to now 55 (in matter of days).
The reason I am looking for stocks between $20 and 45 with above average Imp. Volatality is the Time Premuim portion. example, TDSC ATM strikes has good extrinsic value.
TDSC has now went out of my buy range.
CRR is another one. awesome Extrinsic values for two months ahead options. But well out of my reach.
Looking at MDVN, ASYS. May options and ATM strikes have decent extrinsic value.
I am not worried about the commisions. TOS commisions are very affordable when compared to other well know brokers.
Now my aim is to get more dollar amount in the option sold (bcos time premium ofcourse). This means I need to look for stocks with higher sticker price. After much thinking and doing a reality check, I came to conclusion that I can afford only stocks < $45.
One stock which I found was TDSC. This is a fundamentally good stock. There is a very good reason it went from 17 to 45. The May 45 options had very good time premium. But by the time I put some time into the DD, it went from 43 to now 55 (in matter of days).
The reason I am looking for stocks between $20 and 45 with above average Imp. Volatality is the Time Premuim portion. example, TDSC ATM strikes has good extrinsic value.
TDSC has now went out of my buy range.
CRR is another one. awesome Extrinsic values for two months ahead options. But well out of my reach.
Looking at MDVN, ASYS. May options and ATM strikes have decent extrinsic value.
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