Category: Covered Calls

Covered Call Strangle Entry

Short Strangle

Covered Call – The Strangle Entry When people learn option trading strategies they typically start with the old faithful of option trading strategies, the covered call. Trading a covered call option strategy is one of the foundation option trading strategies that everyone learns. But, what some people do not realize is that a covered call […]

SRPT Covered Call

I was in this trade much longer than usual. Started it on 11/11/16 with SRPT trading at $40.01. I saw the stock drop as low as $27.75 during the trade but I stayed in it. Normally I would have closed with a stop loss but SRPT and I are old friends and I have ridden […]

Diagonals

What is a diagonal option trade? A diagonal is when you purchase calls or puts with different strike prices and expiring at different times. Examples: Purchase a $75.00 call expiring in 6 weeks and sell a $70.00 call expiring in 2 weeks. Purchase a $40.00 put expiring in 2 months and sell a $45.00 put […]