Earlier today I purchased 400 shares of OIH at $119.50 and sold 4 February $120 strikes at $5.67. If called I’ll make about $2,500 in total and if not, it’ll be about $2268 in profit and I’ll hold the shares until the next good opportunity. I debated with myself on this trade since I like buying OIH under $110 but with the call premium so juicy I just had to take the plunge. As always now, I’m maintaining a 50k reserve to buy on the dips if OIH plunges below $100.
ETF Covered Calls website is for educational and entertainment purposes only. Any investment activity is not without risk including loss of principal. Neither this website nor its authors assume any responsibility arising from the use or misuse of any information presented in this blog. You are urged to contact a financial adviser before making any investment decisions. Past performance is no indication of future performance.