Quick Trading Note

Maybe I should start “tweeting” for things like this.

I got my chance to buy Elan for $5.15 a share, though I couldn’t resist buying some first at just over $5.30.  The trading range and volatility makes this a great covered call vehicle.  Will be selling July $6 calls when it recovers to $5.70 or higher.

(comments after the break)


4 Responses to Quick Trading Note

  1. Kevin says:

    Still holding out hope for them to make a come back from the past two years. Let’s hope the AZ drug Bap works. Sounds like it’s a couple of years away from getting approval.

    Thanks for sharing.

  2. Bruce B says:


    Do you sell covered calls on your ANH or NLY positions?

    • hhill51 says:

      Only when I really want to lock in profits on a trading position. Those two tend to have really puny time premia, and wide bid/offers… I wonder why? I traded stock options in the 1970’s, and the bid/offer was much narrower then, even though pricing was in eighths and “teenies”

      My recent trading share purchases in NLY and ANH are sidling over to the exit door as we speak. Covered call written on HGSI looking good, as if it might be repeated for the July series.

  3. GeorgeR says:

    Thanks for sharing the idea, Howard. Buy-writes on cheap and volatile stocks are one of my favorite income generators.

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