Thursday, December 21, 2006

CROX update (trading)

Just sold January $45 calls on half of my CROX stock. I saw the stock jump up this morning and felt like I need to do something. The Jan. $45 calls were sold for $1.40 per. Truth be told I am looking for them not to be called away come January. They expire January 19th and earnings release will be after that at the end of the month (I think). If they do get called away I figure I will make around 8% on that half of my position in two months. That is fine with me. Still think that the stock will move up after we get the new numbers. I just didn’t feel like sitting on it while it trades sideways for another month. The call premiums from today more than off sets the margin interest for the next month.

Do you use covered calls on any of your holdings?

More later

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