Since my last GLW position was a success. I am deploying the cash to work again. I still need to put in more time to study GLW. I want to learn all the possible down side of their business. Meanwhile, i will use Covered Call strategy to build up the position.
Looking from the surface, the numbers are very good. And the management made it clear that they do have strategy and long term plan on hand. Market sentiment toward GLW is very negative. To me, that is a good sign. I can normally buy it at deeper discount if a company lost its favor.
2/22/2012 GLW 13.55 5/19/2012 1.195 75.9 13 80 4.76% $5,084.10 87 19% $108,400
I bought 8,000 shares again. Unlike last time, this time, i sold in the money call. Strike price is still $13. That gives me more downside protection.
If success, it will get called away and i will realize 4.76% profit in 87 days. Or annualized 19%. This is not awfully high. But i rather give up some return for safety.
If GLW is trading below $13 by 5/19/12, then, i got to keep the premium and stock. That will bring my cost down to $12.355. That's a level that i don't mind holding. Knowing they will have a poor Q1, i think the chance of price drop below $13 is rather high. We will see.
Meanwhile, I will budget more time to study GLW
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