Sold JOYG Covered Calls

I added another set of covered calls to my account this morning.  I made the mistake last month of buying my JOYG November 25 calls back early only to see it fall back as low as $14.30 intraday as recently as November 20th.  It made it back up to $17.55 by November option’s expiration, well below my strike.  I decided I should get out on its next rally and I set a limit yesterday for a new covered call well out of the money at the time.  JOYG dipped almost a dollar this morning and then came back more than $4.00 from its lows of the day.

While JOYG was trading at $21.44 I sold three JOYG December 25 covered calls (JQYLZ) at $1.35 and received $392.75 after commissions.  This drops my margin balance down to $7,431.63 now.  That’s a number I’m comfortable with, but will continue to sell new covered calls on spikes in prices like on JOYG today.  With such light volume trading in the markets today, I just don’t trust that these bumps in price will have legs that stay running hard for long.  CHK is another one that’s making a good little run and hopefully will get high enough to hit my limit order on the December 22.50 calls.  I’ve watched it cross back and forth in that range enough to be tired of the movement and will get out up there if I can with an option trade ideally.

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