Bought a covered call on WNR. In the morning WNR went down quite a bit(< 17).
The APR18C which will expire in few days went down quite a bit too.
I used this call to buy the covered call. The call portion of it, I got it for $.12.
It did not reduce my cost much, but immediately and hopefully paid my commisions on this trade.
If this call expires I will sell MAY18C on Monday. I think the APR18C will expire.
If WNR shoots past 18 and I get called I will make $85. Lets see.
WBT BOT +1 COVERED WNR 100 APR 11 18 CALL/WNR @17.14 ISE
Commision: $5.00
Cost: $1,714.00
The whole theory behind this trade is the crack spreads. They are very high right now. This is when refiners make most money. WNR is a very good long trade for the next two months.
http://www.bloomberg.com/apps/quote?ticker=CRK321M1:IND
4/19/11
Unfortunately WNR was getting called away. So closed the position manually. With my broker, if a CC is called, the commision is steep($15).
WBT SOLD -1 COVERED WNR 100 APR 11 18 CALL/WNR @17.98 ISE
After commisions made $74. Not bad for a position held for less than a week.
Opened another CC position on WNR on 4/18/11.
WBT BOT +1 COVERED WNR 100 MAY 11 18 CALL/WNR @16.35 ISE
Cost: $1,635.00
Commision: $5
Should have gone for May19 call. But always looking to reduce my cost basis and do CC with ITM options.
If called, I will make a tidy profit for month hold. If call expires, I make $111.
05/04/11
Bought back the MAY11 18 call for 0.05. Looking for a spike in WNR to sell another 18 call(maybe MAY or JUNE).
05/09/11
5/9/11 WBT SOLD -1 WNR 100 MAY 11 18 CALL @.25 CBOE -1.5 25.00
Expired.
05/23/11
WBT SELL -1 WNR 100 SEP 11 18 CALL @1.10 LMT GTC CBOE
9/19/2011
WBT SOLD -1 WNR 100 OCT 11 16 CALL @1.40 CBOE ($1.50) $140.00
Sold another call. Effectively long 100 shares of WNR at 13.6. with no upside after 16.
9/19: I think WNR will be in sideways action for sometime to come. This is the reason for selling 16C instead of 18C.
The APR18C which will expire in few days went down quite a bit too.
I used this call to buy the covered call. The call portion of it, I got it for $.12.
It did not reduce my cost much, but immediately and hopefully paid my commisions on this trade.
If this call expires I will sell MAY18C on Monday. I think the APR18C will expire.
If WNR shoots past 18 and I get called I will make $85. Lets see.
WBT BOT +1 COVERED WNR 100 APR 11 18 CALL/WNR @17.14 ISE
Commision: $5.00
Cost: $1,714.00
The whole theory behind this trade is the crack spreads. They are very high right now. This is when refiners make most money. WNR is a very good long trade for the next two months.
http://www.bloomberg.com/apps/quote?ticker=CRK321M1:IND
4/19/11
Unfortunately WNR was getting called away. So closed the position manually. With my broker, if a CC is called, the commision is steep($15).
WBT SOLD -1 COVERED WNR 100 APR 11 18 CALL/WNR @17.98 ISE
After commisions made $74. Not bad for a position held for less than a week.
Opened another CC position on WNR on 4/18/11.
WBT BOT +1 COVERED WNR 100 MAY 11 18 CALL/WNR @16.35 ISE
Cost: $1,635.00
Commision: $5
Should have gone for May19 call. But always looking to reduce my cost basis and do CC with ITM options.
If called, I will make a tidy profit for month hold. If call expires, I make $111.
05/04/11
Bought back the MAY11 18 call for 0.05. Looking for a spike in WNR to sell another 18 call(maybe MAY or JUNE).
05/09/11
5/9/11 WBT SOLD -1 WNR 100 MAY 11 18 CALL @.25 CBOE -1.5 25.00
Expired.
05/23/11
WBT SELL -1 WNR 100 SEP 11 18 CALL @1.10 LMT GTC CBOE
9/19/2011
WBT SOLD -1 WNR 100 OCT 11 16 CALL @1.40 CBOE ($1.50) $140.00
Sold another call. Effectively long 100 shares of WNR at 13.6. with no upside after 16.
9/19: I think WNR will be in sideways action for sometime to come. This is the reason for selling 16C instead of 18C.
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