NOVEMBER TRADING UPDATE
TRADING UPDATE: November is almost over. November is usually a good month. We’ve had a few good days, but then some down days. Don’t get me wrong, I love up and down movements.
Take a look at Novavax (NVAX). The stock as at $1.99. The Jan $2 calls are 25¢ to sell. This would create a covered calls. Let’s do the numbers. We usually use 1,000 shares just to keep the math easy. So 1,000 shares would cost $1,990. Let’s round off the penny to $2,000. Now, we can sell the Jan $2 calls for 25¢ times 1,000 and take in $250 now. This would make us obligated to sell the stock at $2.
$2,000, or $1,000 on margin, generates $250 for a little over a month.
Also check out AMD, SWN, NE, RIG.
Are you listening to the Podcasts? Go to wadecook.org and click away. We recorded another one yesterday. It will be ready soon.