Sold MON March Covered Call, Again

Two days ago I closed my Monsanto (MON) March 80 covered call for a profit when I bought it back at $2.40. It bounced around more that day and again yesterday. Yesterday morning I entered an order to mimic the first trade I made last week. While MON was trading at $80.18 my limit order to repeat my first trade on this option at the same price hit and I sold to open one MON February 80 covered call (MONCP) at $4.50 and received $439.25 after commissions. If it drops again this week I might buy it back again if the chart supports it.

Basically I have the same position back in place that I had from the beginning, but just pocketed $188 this week as an extra bonus. I haven’t had the stomach to sell new naked puts on it yet, but might on the next dip. I’m still long TDW and JOYG without covered calls. I’m not sure how much longer I’m going to let that stay the case. I might have to go out to April to get the premiums that would make them worth selling.

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Read more on Covered call, Monsanto Company at Wikinvest

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