Friday, July 24, 2009
Dipping a toe into Small Cap Buy-Writes
I bailed out of some small cap mutual funds that my broker had me in and switched over to a buy-write on IWM (Russell 2000). Volume on both the ETF and the options looks good (strikes at every dollar) , with bid/ask spreads of 1 cent and 1 dollar respectively. Bought IWM at 54.30, sold Aug 54 calls (IWMHB) at 1.82 for a net debit of 52.48.
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1 comment:
the markets would be volatile.but confidence in the investor,would sometimes fetch him good earnings.investing in small cap stocks has many advantages.today,we could find many mid cap companies providing good dividends..
good to read your blog thank you.
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