Sold covered calls on my last batch of COP shares on the bounce to $55.50 today.  Sold Jan $57.50 calls for $2.80.  Upside to the portfolio is seriously limited now, but transition to much cash is now in place.  Options contract prices give a nice buffer to the downside plus inject some real cash flow into the pot.  Most of the calls go out to December or January.  If all or most of the calls get exercised the portfolio will be hitting some very nice new highs.  For my needs, this strategy represents a good balance between exposure and insurance, and should put a smile on my face no matter which direction the market takes.

 

If my best guess of a sharp sell off in October/November takes place.  The the calls will be closed at a profit and the accumulated cash will be deployed for possible end of the year run.