I’ve sold the following
I sold these yesterday. They appeared to be moving a bit too fast. I’m sure I’ll regret it… I would sell calls against them if I had enough shares… This would be the reason for selling down my positions. I want to take a position large enough to sell a covered call. I was looking at EKSO earlier, maybe I’ll just take a chance on that one in my Webull account. I have enough funds to do that this morning.
I’m still not very keen on the relationship between call premiums and Implied Volatility (IV). To me, EKSO seems ideal at this moment. You have a stock that is trending up. Their financials don’t look all that great, but appear to be recovering nicely. After visiting their website, it appears they are heavily independent upon the rehabilitation industry. This would mean COVID would have a large impact on their business more than just sales of essential equipment, like pace makers. People need pace makers regardless of COVID; people can’t necessarily wait for rehab, but maybe it gets delayed anyway…. That’s my theory, I’m sure if I read more, I would know more, durrr.
Anyway, so there’s this stock price trending up and has a huge spike, then falls back in line with the trend higher. This spikes IV and spikes call premiums? I prefer weekly expirations right now, but I’m going to live with this one being monthly. 2/19/21 expiration is offering roughly 7% premium against EKSO 10 strike calls. These are slightly ITM, where I want to stay to have more CYA protection. I guess that would be CMA (cover my ass).
Of course I could sell some vertical spreads or diagonals; of which I will be absorbing more of to become more comfortable with the idea. Right now I just have a higher level of comfort with the covered calls. I would like to do more with SLB again, but SLB is at the top of the channel, so I’ll be waiting to see if they will come back a little. If SLB will fall back to a more ideal position and continue higher, I’ll dump everything to try to maintain a covered call with weekly expirations against SLB. We’ll see. Now I’m just rambling.
Buy 100 EKSO – Sell a 10 strike call with 2/19/21 expiration. Hopefully sell for enough to be covered to $9 on underlying and hope for roughly 7% max gain premium.
As for gas, I’m lost without my data. The last thing I saw was something about the EIA projecting production to increase. haha! the market will be back to oversupplied in no time… Good Luck