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jsbuykBax
06-28-2015,
5/19 bought covered stock on GOGO. Stock was trading at 14.55 and sold June calls at the 15$ strike for .95. Reducing cost basis to 13.60$. I made a notional bullish assumption that since GOGO was beat down and looked like it was turning around that it might go up more....but still that is only a 50% probability of profit. By selling the calls against it I limited my potential gains to 1.40 but lowered my break even to 13.60 thus increasing my probability of profit to over 65%, (based on option pricing and expected move). Buying power reduction around 450$ per lot.

Since then the price has moved a lot in my favor.

Today 5/28 I sold the position at 14.77.....locking in a profit of 1.17$. This was around 83% max profit. Overall gain of 8.6%.....actual return on capital based on buying power used was around 26%. In 9 days.

Now I have re-established the position in GOGO for the June 18$ strike. Stock trading at 17.55...sold 18$ June calls for .85 lowering my break even to 16.70. And I'll start it anew.

For me this is how I take a notional assumption based on limited technical analysis (it looked beat down and turning around and volatility was high) but still a 50/50 shot and applied a strategy to give me an edge...then took profits as they presented themselves and re-established a new position with the buying power. The initial position only had 17% left of max profit....so by taking it off I 1. locked in profits and 2. established a new position with more potential profit within the same time frame.

aqebauyec
06-29-2015,
Exited GOGO for .93 gain which was 71% max profit. That comes to another 7.7% gain or about 20% on capital used. With very little theta left to collect I considered rolling into July for additional credit but the market has widened a bit and the volatility has fallen off, so I'll look elsewhere.
Overall in 22 days the position generated around 45% return on capital used (buying power reduction).

I think the important thing here is to manage the position before expiration locking in profits. Especially with a stock like this one where the markets could easily widen out as they didn't have a ton of open interest to begin with. Now I can redeploy the capital into July positions which are still at the top of the theta curve.

aqaqayi
06-29-2015,
Finally in breakout mode. I'm long 22.26 avg. Will lock in half on the way up, potentially swing trade the rest.

aqecaen
06-29-2015,
Nice Trade

admin
07-01-2015,
GOGO setup here for bullish continuation. I'm long biased on 22 breakout for swing trade towards 25/30 this summer.