Boeing Co (BA) Covered Calls

I wrote about being assigned 100 shares of BA yesterday.  I charted BA yesterday and again this morning.  It looks like it’s near the bottom of the trading channel and should bounce up, but hasn’t yet.  The fundamentals are debatable with the massive orders they have in queue being questioned on their ability to deliver on them.  I still like BA long term, so I sold out of the money covered calls on it.

While BA was trading at 92.51, I sold one January 95 covered call and received $319.25 after commissions.  I’ll answer before anyone asks why I didn’t wait longer before selling these covered calls since I sound like I’m fairly bullish on the stock.  I am not in the business of holding stocks for growth in this account.  This account is used for selling options and not losing money.  I’ve sold two options on BA now, the naked put that got me into the shares and now hopefully the covered calls that will get me out with a slight profit.  I am sitting on a small paper loss right now, but will keep a close eye on BA and think I’ll finish with a profit.  This covered call offers a potential 19% annualized gain if the stock’s price stays flat.  If it’s called away my return will be over 33% annualized.  Of course that’s based off of the current price, not where I got in up at 100.  The point is the entry point is irrelevant now.  I can only think in terms of what I have in front of me.