The Boeing (BA) Flight Continues

Within five minutes of me selling a naked call on BA it rose. I managed to sell at the absolute bottom.  I haven’t had such bad luck on a series of transactions in years, so I’m trying to put myself out of my misery now.

While BA was trading at 92.26 this morning (up over $5 from where I sold my last call) I bought back my original January 95 call (BAAS) and paid $275.74 with commissions to close out this single option for a profit of ~$45.  I’ve had such a bad run with BA that I’m trying to end my bad fortune and will either accept a loss of a little more than $400 if it stays above 90 or will have made a wise move in keeping the call with the lower strike if it drops again.

In the good markets selling puts and covered calls earns its fame for producing fantastic returns.  In the challenging markets selling puts and covered calls earns its infamy for whipping out previous gains.  I make every attempt to preserve capital in these challenging times. As I’m doing with BA, I try to look at each position as a new starting point and ask, will I have more money in 1-2 months if I make this trade.  I have a much better shot at that by keeping the January 90 call and ditching the January 95 call.  Taking a realized profit doesn’t piss me off either.

I haven’t mentioned it in a while, but I’m also long 100 shares in my IRA too, so if BA does resume flight and sustain it I’ll be happy in that account.