Sold AVAV Covered Calls

I tried to sell my AVAV shares on Monday, but it didn’t make it high enough to hit my limit order so today I changed my plan.  I decided to keep the shares and sell covered calls instead.  While AVAV was trading at $24.75 my order finally hit and I sold two AVAV August 25 covered calls for $1.45 each and received $288.57 after commissions.

AVAV has been drifting lower since mid-May and I think $24 will hold support, but with their earnings release coming up in a couple of days I figured I should go ahead and lock in the premium while it was still high.  I did well on the initial premium I received on the naked puts too, so my cost per share is down to $22.17.  That might not be low enough if AVAV disappoints, but I still think this is an easy longer term hold on a dip.  If it shoots up higher before August options expiration I’ll have to be happy taking a good gain on a small investment.

Unrelated Note: I don’t know what’s up with my comments’ setting changing every couple of days.  Every two or three days I have to turn them back on only to see them all closed a couple of days later.  I’ve upgraded my WordPress version in the hopes that if there was a bug or hack in it I’ve fixed it now.  If you ever see it closed and want to leave a comment don’t be shy about emailing me.  Hopefully it’ll resume its old ways soon of actually letting me make changes when I want rather than when it decides.