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.