Sold Same MON Covered Call for Third Time

For the third time I sold the same covered call on Monsanto (MON).  I got out of my covered call last week for a profit the second time.  MON dropped nearly $10 from its recent high before finding footing and rebounding yesterday and today.  I tried to sell a March 85 call, but then MON came off its highs and while MON was trading at $79.34 I changed my order sold to open one MON March 80 covered call (MONCP) for $2.45 and received $234.25 after commissions.

MON might go up to $90.00, but I’m taking the $80 strike price as a good exit price to lock in a decent profit from this series of trades over the past few months.  I actually think MON will close March expiration below $80 and I’ll get to trade the options again for April expiry.  If it stays up above $82.00, I’ll have to find a new target.  If it’s between $80.00 – $82.00 at expiration I’ll probably roll it.

I thought about buying back my hedges on NDAQ and SSO yesterday, but decided the better move was to keep my insurance in place and take the profit I expected from the original trade I planned.  I’m still long JOYG with no covered call, so I might sell some this week if this rally keeps going and maybe even if I see it starting to fail.

For a little while this morning my account was sitting on a profit for the year.  It isn’t there right now, but is close.