Options

Using options to enhance a value investing strategy.

Target Corp. Covered Call Trades and April Expiration

by Glenn Busch April 24, 2012

By the end of February, Target (TGT) was the one position that looked stretched. It’s RSI was in overbought territory, the MACD looked like it had peaked and was about to roll over, and the stock had moved so far from its moving averages that it looked perfect for at least a consolidation move. Target begged to have a call written against it and I did at a strike of $57.50.

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Covered Call Trades on ConocoPhillips and Eli Lilly in our Enhanced Dividend Income Portfolio

by Glenn Busch February 6, 2012

The end of 2011 provided a lot of opportunities to sell covered calls against our oil and energy positions. We already sold one covered call against our ConocoPhillips (COP) position that expired worthless in November of 2011 and in January of this year we had another one.

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December Option Expiration & Our Enhanced Dividend Income Portfolio

by Glenn Busch December 22, 2011

The lone covered call that expired last week was for Exxon-Mobil (XOM). We previously sold an October call on this position and had it called away. Then, when all the major integrated oil & gas companies sold-off and we were able to re-establish our position in Exxon-Mobil for around the same price we were called away at. Again, the major integrated oil & gas companies rallied and we saw an opportunity to sell another call at short-term resistance levels.

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November Option Expiration and our Dividend Income Portfolio

by Glenn Busch November 28, 2011

Option expiration for November 2011 was just over a week ago. We had four outstanding covered calls in our Enhanced Dividend Income portfolio, all expired worthless. I’ll run through each trade below.

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Two October Option Expiration Events in Our Enhanced Dividend Income Portfolio

by Glenn Busch October 28, 2011

Our Enhanced Dividend Income portfolio invests in high-quality dividend paying stocks that also have the ability to grow their dividend over time. The portfolio also involves selling covered calls selectively and strategically on positions. We sold calls that expired last weekend on two positions, JP Morgan Chase (JPM) and Exxon Mobil (XOM).

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Fairholme Fund 13F Comparison, BP Plc, & LEAPs

by Glenn Busch August 19, 2010

Latest 13F comparison for the Fairholme Fund manged by Bruce Berkowitz, a discussion of their investment in BP Plc, and using LEAPs to improve the risk/reward profile.

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