Thanks Mark, that is a great calculator.
Another point that I got from you was taking chips off the table for some profit instead of it all. When there is little reward remaining, that's just being smart. Most of the time it's not a winning decision. But every once upon a time it saves you a LOT of money.
I feel like I'm double dipping. You made a bullish call and were correct. You are entitled to that extra profit.
I also have 800 XLU and 400 XLE but they dont seem as good ETF for selling covered calls since the premiums are small for the 1 month window that I'd like to have. Would you
agree with this or am I missing potential profits? I don't like to avoid answering, but the truth is there is no 'right' answer. If the returns seem too small to YOU, then they are too small. Someone else might see it differently.
It seems that I would be better off selling naked puts on these instead of covered calls. There really is NO difference, assuming you use the same strike price for the options. Naked puts are easier to trade and save on commissions, but the naked put is a position that is equivalent to the covered call.
I'm neutral but more bullish on utilities and energy right now.
Thanks for all your help. :-)
Mark D. Wolfinger
The Rookie's Guide to Options:
The Beginner's Handbook of Trading Equity Options