Sold DRYS Covered Calls

I’ve been getting nervous about my pile of DRYS shares and long calls.  I bought my 600 shares through a series of naked puts throughout last year and bought the six DRYS calls in November when DRYS was trading at $3.53.  Not counting the premiums I’ve received through the naked puts and covered calls since then, my average cost per share for the 1200 shares I have exposure to is $19.80.  I think DRYS can get back to that level within a few weeks, but I’m not so stupid that I don’t understand that it could also go right back towards $5 easily too.  I’m still bullish (named it one of my 2009 stock picks last week) on DRYS, but feel I’m at a point where I have to take some profits.

I decided to leg into the trade with only three covered calls for now.  While DRYS was trading at $13.42 I sold three DRYS January 15 calls (OOCAC) for $0.80 each and received $227.75 after commissions.  I sold out of the money in case this rally continues for another two weeks.  I might sell more calls before January expiration rolls around.  $227.75 isn’t much to take in, but it’s better than nothing and essentially gives me a limit order to sell at $15.80 with the $0.80 of that in my account already in my pocket.