Saturday, September 03, 2011

Fix a calling away covered Call

I bought Sept $41 SLV covered call, and SLV is over 42.5 in mid August, it is a sure winning trade, but I don't want my SLV be called away.

When a covered call is going to be called away, should you adjust it? Well, I find out the answer is like playing black Jack, you don't want to split your 20 points winning hand.

I bought another $44 covered call at $40.7 on August 23, and I adjusted the price by $1 to Sept $42 SLV covered call for $0.37 on Sept 1st, it looks great now as SLV is over $42 again.

Remember every end of month future clearing dates are good dates for buying SLV. Here is the list of dates:

NYMEX gold and silver options expire on the fourth business day prior to the future contract’s delivery month. The settlement type of the option is the physical metal underlying the futures contract. Delivery may take place on any business day beginning on the first business day of the delivery month or any subsequent business day of the delivery month, but not later than the last business day of the current delivery month.

2011 gold and silver options expiration calendar:

12 December 2010
26 January 2011
23 February 2011
28 March 2011
26 April 2011
25 May 2011
27 June 2011
26 July 2011
25 August 2011
27 September 2011
26 October 2011
22 November 2011

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