Covered DRYS Naked Calls

I’m slammed at work today (and probably the rest of the week) so this will be short.

DRYS beat earnings and the shares which started to run up last week ran further. I already owned 200 shares, but sold four new calls not far enough out of the money. This morning, instead of buying the calls back for a loss, I bought 200 DRYS shares for $21.94. I’ll take a loss on these shares, but thought it was better to buy the shares than to cover the calls which have $1.00 of time value left. If I had more time I might have waited and watched, but I needed to cover and get back to work.

I’m still short two naked puts at 17.50 that I haven’t closed yet. I’m letting those ride for now as I am my other two DRYS November 30 calls. I’ll review again tonight when I have time and my change my plan again.

Read more on DryShips at Wikinvest

Comments Off

* If you like this post, then consider subscribing to my Full RSS feed or my email updates.

DISCLAIMER: While I am a Registered Investment Advisor Representative, the information contained within this site does not constitue personalized investment advice. This material is meant as entertainment and is only a view into how I invest my own account, but not necessarily how you should invest your own funds. Trade using your own research at your own risk. This is impersonal investment advice which means the material written here, in email exchanges, on Twitter and/or other social networking sites do not purport to meet the objectives or needs of specific individuals or accounts.