I own some Ford stock (1700 sh) but I sold 500 thus did my collar with 1200 shrs. Pretty much dead money. I did a collar around earnings. Man the premium on the puts was horrible. .10 for the 16.00 expiring the next day (earnings release) while the stock was trading at 16.30. I also sold some some covered 18 Sept calls for .26 to help fund it. I could buy them back now for .16. The earning wasn't very good so I sold the 16 puts for .19 but it had to drop far for me to make any money I just bought them to protect against a massive drop. I'm thinking of just buying the calls back and dumping it all. Didn't make a ton but made some.
Seems like there could be a way to make some money doing this. Maybe a better stock choice? Maybe not so far out of date and money for the covered call? Maybe don't do this around earnings due to the premium price of the puts. Anyone use this strategy have any tips? Thanks
Seems like there could be a way to make some money doing this. Maybe a better stock choice? Maybe not so far out of date and money for the covered call? Maybe don't do this around earnings due to the premium price of the puts. Anyone use this strategy have any tips? Thanks