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UVXY shares, sold covered calls on them bought 500 shares, at $35.5, sold the 8/26 covered calls ($37 strike) for $2.40/sh... when volatility picks up, I have traded UVXY and sold covered calls on the shares as a return enhancer. Granted, IF volatility takes off, I could end up capping my gains due to the covered calls (and it happens), but my goal is to get 'something'.. so in this case, IF I lose the shares next week at $37, gains capped at $1950.. $2.40 x 500 shares = $1200 'gains' locked in via the covered calls $1.50 x 500 shares = $750 gains on the shares itself see where we are in a week... this really works best when volatility is up and the volatility premium on the options ramps up... |
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