Entries from July 2009

Can I get more out of a deep ITM covered call?

July 29th, 2009 · 7 Comments

About two weeks ago, I made a covered call play with AFL and the $31 strike for August expiration. AFL closed yesterday at $36.60, so my call is deep in-the-money. Looks like I way misjudged where AFL might end up, though we’re still 24 days away from expiration. I’m wondering what I should do to try and capture more of that run up for myself?

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Tags: Options

Covered call: AA and AA HL

July 23rd, 2009 · 1 Comment

Earlier this week I executed another covered call trade, this time using Alcoa (AA) and the Aug09 $11 call (AA HL). This wasn’t quite according to earlier mentioned plans, and I’m now wondering if I made a mistake.

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Tags: Options · Trades

Ally OSA down to 1.8500% APY, No Penalty CD to 1.90% APY

July 21st, 2009 · 1 Comment

Just logged in to the Ally Bank website and noticed that the yield on their OSA (online savings account) is down to 1.8500%. Combined with my post last week on the same topic, this seems like a rather disconcerting rapid drop.

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Tags: Savings

Dividend Aristocrats to consider for Aug09 covered calls

July 19th, 2009 · 1 Comment

As mentioned in my posts last week, my wife and I have decided to consider dividend paying companies as the underlying stock in future covered call trades. The idea is to not only capture the call premium, but also receive a dividend during the period in which we hold the underlying shares. It’s important to note that using a single company as the underlying adds concentration risk compared to using an ETF, but we hope to mitigate that somewhat by picking our companies from the list of 2009 Dividend Aristocrats.

More on this topic (What's this?)
S&P Initiates Pan Asia Dividend Aristocrats
Dividend Aristocrats Underperforming Broader Market
Read more on Dividend aristocrats at Wikinvest

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Tags: Equities · Options

Ally Online Savings drops to 1.95% APY

July 15th, 2009 · 1 Comment

Just a quick note to record that Ally has dropped their online savings rate to 1.9313%, which means an APY of 1.9500%.  This is down from a 2.00% APY the last time I checked (sometime last week.)   I think they change there rates on Thursdays and hold them until next Thursday, so that would mean […]

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Tags: Savings

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