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.

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