Today's Trades

You may have noticed on today's adjustments that rather then sell front month options I reverted back to trading longer term options. The reason is I'd rather bring in the extra cash now and spread out the options to different expiration months so I don't have too many trades to make in a single month.

You may have also noticed that I re-entered 3 positions that were called away this past weekend, CRI, FTEK & URBN.

Now I'm sure some will say why didn't I just roll out those calls rather than let them get exercised. I prefer to allow positions to get called away, since that was my goal when I opened the position. I'd rather book a profit first, then if they show up on the scan, I just re-enter them. This doesn't happen all that often. In fact, I think this is the first time since I started blogging that the same stocks that just got called away showed up again after options expiration.

On two of my new positions, FTEK & MFLX, I sold OTM call options. Every once in awhile I find OTM CC's that meet my criteria. I don't purposely look for ITM CC's but it just works out that way most of the time, due to my 10-12% downside protection requirement.

Lastly, you'll see that MFLX didn't quite meet the downside protection at 9.63% but it was close enough, and the annualized return was attractive at 38.03%.

I may have a few more adjustments to make before the month is out, especially on EXP which is currently ITM and would result in a loss if called. I'll probably split this position, like I did with KCI last month, and allow one half to get called at a profit and then do another dollar cost averaging and roll the other position.