Tuesday, January 10, 2017

Covered call selling: ABT

Today I sold 1 ABT Jan18'19 45 CALL @ 3.5.

 

2 comments:

  1. I've found an options seller can capture more time value decay by selling at an expiry 6 to 8 weeks out. You might consider selling 6 a year instead of one per year with longer expiry to capture more premium. Good luck.

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    Replies
    1. Thank you for the suggestion, FV. I would like to keep the stock, and don't want it to be assigned. If I sell covered calls at an expiry 6 to 8 weeks out, with higher premium the call will be easily assigned, with low premium it might not be worth doing it.

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