In my previous post, I described covered calls in DVN stock. I posted 2 of my trades --- one due on May27 and the other in mid June. I stated that if oil stayed above $100 barrel the stock would stay in the $60's ( it has) . What I didn't post is that I actually have a total of 2700 shares with covered calls --(2200 after today) ---- due between now and July 17. Today the may 6 call was due ------- I'll post the trade,, bought on 4-18-22 and I was forced to sell today. 5-6-22. ------ Bought 500 shares for $63.66 on April 18, was forced to sell today for $65 ( DVN is almost $70) ---- so I made $1.30 X 500 == $650 plus the call == $2.55 X 500 ==$1271 -------- so total of $1921 in 3 weeks. == $1921 / $31,830 === 6% in 3 weeks. The other 2200 shares I own will do just as well. On May 27 the trade I originally posted will occur, and I will post the results, which will be 7%, exactly what I said it would be. Here is a copy of the transaction that I am referring to today. I am happy with 6%-8% a month return. Some are not. DVN is not a random pick,,, my next issue is whether I will reinvest again, or take my profit and wait and see.

fools gold IMO - sounds like Vegas truthfully - if it works for you then so be it - majority of folks? No way

Pretty much. Anytime you are playing in the market for short term gains, you are just gambling, not investing. These derivatives (calls, puts, etc..) are for lowering risk, hedging, not try to profit from it, again it is gambling. I’m mean if you have a small account and you are having fun with this kinda stuff, ok that’s cool.

Congratulations one upper

Gambling ?? lol ---------- " not trying to profit from it" " fools gold" ----- DVN-- not a random pick ---- a premier oil company with huge profits, and recently announced an increase in dividends paid. As I stated in my original post, the price is dependent upon oil staying above $100 a barrel. THAT is the main issue. Right now oil is $110 a barrel. These trades are for the next 30----90 days --------- period --- I'm not advocating anything long term. Hold up your hand if you think oil will go below $100 a barrel in the next 90 days. Talked to a driller and they are being delayed 3-4 months just to get the pipes for the wells after they are drilled. Just trying to let THF members in on a quick opportunity to make a few dollars, again, my original post says " if you have money just laying around" , does not say put your retirement fund into it.
Right now I have enough into this deal, 2200 shares, after the 500 that sold yesterday, end of May and mid June I will be reduced by another 700 shares, the last 1500 will clear out on July 17. At that point I will reevaluate and see if I want to go back in,,, IF I decide to buy more, it will only be for calls 3-6 weeks ahead of time.

Another unmentioned issue with your strategy is that stock price != oil price. Especially around earnings.

Glad you made a little money.

I am sure booskay has done his due diligence with DVN using fundamental and technical Analysis, the company's price correlation with oil, and current geopolitical events. I seriously doubt he considered this a Vegas trade of chance, nor was it.

Thanks for sharing booskay. It's been interesting to follow.

This is my view on this…

https://www.cnbc.com/2020/12/10/kev...investinginvest-like-warren-buffett.html