After a few days, I realized that the only strategy anyone would let me trade was a covered call. I shrugged my shoulders and said, I might as well figure out what the sweet n low is on this guy. I researched the internet, re-read my book and formulated a strategy.
Come the opening of the market I started hunting for that miracle stock that would net me a nice premium for the covered call and be sure not to go down. I ended up selecting CPSL (100 shares) off of the Nasdaq. I bought it on a gap up, hoping for enough forward sustainability.
Once I figured out the proper way to actually enter a covered call order (my god that was maddening; there was not a thing in any book I read on how to enter an order--I guess this is why they don't let beginners sell naked puts); begin with an open and end with a close, and buy or sell as needed.
By the time I figured out the proper procedure CPSL had risen above the strike price I was trying to sell at, no matter. I went ahead and sold one call slightly In the Money. Seconds later, the net credit appeared in my bank account.
I was pretty damn proud of myself, but we all have to start somewhere.
Posts
