Just a brief note to record that on the 3rd, I adjusted our AA covered call by buying back the AA HL ($11 strike) options and selling replacement AA HO ($13 strike) options for a net debit of $1.33255 (including commissions).

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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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Today, we had more transferred funds clear the ACH waiting period in our TradeKing account / GI portfolio, so we were able to execute another covered call: AJO HE (Aug09 $31) and the underlying Aflac (AFL).

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Dipping our toes in the water a bit this week, we did our first ever covered call trade (also called a buy-write.) Given our small GI portfolio size (only a couple thousand $ transferred and available for transactions at TradeKing), we chose to use the ETF known as UNG as the underlying, and a July $13 strike as the call (UNY GM). You might be asking “Why?” about now.

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