Watch those in the money positions get rolled out today & tomorrow, just saw a 500 contract position [ 50,000 shares ] get rolled out $18.00 May to $18.00 June, net credit pick up $0.54 less option commission, say $0.50 net, thats $25,000 for 27 days and he will do next month, and so on. Sometimes he may roll up and out and wear at a income debit but a intended capital gain that is a better return. The zero yield [ dividend ] is a blessing as the generally that option won't be exercised for its dividend, so he is not trading at zero yield but for income. He has moderate downside protection and can close any times.
I have been trading options for over 20 years and I like this strategy in this market. [ my strike prices range from $12 to $16 currently and will adjust constantly and should not get exercised. ]
Cheers
Do your own sums
NCM Price at posting:
$19.18 Sentiment: Hold Disclosure: Held
