Tuesday, October 25, 2011

10/25 Covered Calls

This daily posting tracks my covered call plays for November and other base positions.

New covered call positions: DFS, XLF and XOP.

Covered Calls

sym phase trend adx   200/50 40/10


I had one hold-over from October. The options sold against GMCR weren’t exercised, and I’ve decided not to sell November calls against the stock position -- the two-month cost in case of exercise would be too great -- but I’ll continue to track it here.


DFS has been tracing a large symmetrical triangle -- a continuation pattern -- since its high on July 7.

EWZ has broken above its 20-day high but has since pulled back to below the breakout level.

GMCR is trading within a downtrend channel that began Sept. 20.

NLY has broken above a sideways trend that began Oct. 7.

RIMM is trading within a sideways trend that began Oct. 6.

SLV has broken above the sideways trend that began Sept. 28.

XLF is trading within an uptrend that began Oct. 4.

XOP is trading within an uptrend that began Oct. 4.


DFS 23.60 21 2.92
EWZ 59.34 55 5.20
GMCR 111.77    
NLY 17.96 16 0.52
RIMM 23.33 21 2.96
SLV 30.76 28 2.96
XLF 13.14 12 1.33
XOP 53.22 48 6.35

Other Base Positions

  • None.


  • phase: 20-day price channel phase, with green for bull trend, red for bear trend and yellow for neutral trend.
  • trend: Price direction, green for higher highs and higher lows, red for lower highs and lower lows, yellow for sideways, and grey for neutral or ambiguous.
  • adx: Average directional index location, indicating the strength, or the temperature, of the trend. Orange for 40 or greater, aqua (light blue) for 25 and up but below 40, magenta (light purple) for 20 and up but below 25, and brown for anything below 20. (Mnemonic: Orange for the overhead sun, blue for the surrounding sky, magenta for sunset on the horizon and brown for the earth.)
  • 200/50: The moving average cross, green for the 50-day ma above the 200, red for below and yellow for closely aligned.
  • 40/10: The moving average cross, green for the 10-day ma above the 40, red for below and yellow for closely aligned.

About my trading methods

Read a detailed explanation of my analysis method, including trading rules. These don't, at present, discuss my covered call strategy, which is under revision.


Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

The trader’s greatest sin is inaction. Sleeper, awake! Seize the Nietzchean moment. Roll out of bed and trade.

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