Thursday, September 24, 2009
Oil Dizziness Continues
On Monday I did a covered call with USO. USO jumped about $1 at opening Tuesday, and my position went up about .5, which is about 30% of the available maximum profit. Although I'm not entirely consistent with this, when I get a significant percentage of the available profit available that quickly I will sometimes exit the position. Oftentimes there is a quick retrace after a big gain like this. If I exit I can take advantage of that retrace. If I'm wrong, I can re-establish the position with most of the remaining premium still available.
Labels:
covered calls,
USO Oil buy-write
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