Tomorrow morning (Fri, the 20th) I am buying Devon energy stock, only 500 shares ,, IF I can get it for $70 or less. ------------- today the $70 call that expires on May 27---one week from now ------ was selling for $2.30------------ risk in the next week is very small,, as usual, the price of oil needs to stay above $100 a barrel ,, the math is -- $2.30 / $70=== 3.2% I"ll post the trade if it goes thru.
On the negative side,,, if the stock falls some, Devon is paying $1.27 a share dividend to anyone who owns it on June 13, so $70 -$2.30== $67.70 and holding it till June 13, $67.70 - $1.27 == $66.43 --------------- I"m ok with owning the stock at that price,, it is unlikely to fall much right before the dividend is paid out. Devon is making tons of $$$$, on May 2 (3 weeks ago) they announced raising the dividend from $1 to $1.27 per share, hence the risk seems very small at this point.

Last post there were a bunch of ridiculous comments referring to things that I did not say------- ex. -- guaranteed return, fools gold, life savings at risk, etc etc.

Repeating from the original post,,, if you have cash sitting in the bank doing nothing, this might be a good way to put it to work, FOR ONE WEEK !!!!!!
My last post on DVN said 7% return in 6 weeks,,, it will close in one week (May 27, same as this one) and do exactly as I said it would. Rehash - bought for $64 a share, sold the $64 call for $4.53 ------ will close next Fri. $4.53 / $64 == 7% in 6 weeks time.

How much money do you use when you are doing this sort of thing? Not an actual dollar amount that is personal and totally relative to each person’s situation but I am wondering like a percentage of your net worth or earnings.

It seems like you have done your research but things like this are gambles. Are you investing a week's earnings, a month’s, a year’s? I have always wanted to dabble in things like this but I think I would struggle to find the right amount to risk. Too little and it really isn’t worth my time and too much well that is scary.

I have several hundred shares of DVN at an average cost of $49.57.

As much as you are willing to lose.

Rat ------- as I type this I have 2200 shares, will buy another 500 tomorrow,,, in one week I will be relieved of 1000 of the shares. I dont do the stock market ----- but ---------- sold some land and was sitting on the cash. To answer your question this is about 1/3 of my cash,,, On 1500 of my shares the call is due on July 17-------If DVN holds till then I will make about $13000 on that 1500 shares, which will be roughly a 14% return in 4 months. At that point I doubt if I will do any more.
If I had it to do over, I would not do the deal 4 months out,, I would keep doing 1,2,and 3 weeks out.
Only good thing on the ones due in July, I will own 1500 shares on June 13, and get another $1.27 dividend. So add another $1800 to my profit. I am posting my July calls --------- the yellow is the expected profit on each one, just to give you an idea. I hope some members consider this and try it and make some money.

I bought 600 shares today at $69.75. We will see how it does.

I am up 10.3% in two weeks. Thanks for the tip. Easiest $4,500 I have made. I think I am going to hold until the dividend date and then let it go.

MANY years ago I got into the market. I picked some good, well financed companies, and watched the price/ value climb. It kept going and I was an investing genius. Then the market tanked and I lost $$$.

I learned a truism about investing. A bull can make money and a bear can make money. But a pig will die broke.
And, I’m really not as smart as the next guy.

I’m old. That means I’m now risk adverse. I still invest but set a goal for each issue and that also includes a get out price. As/if the price increases, I generally revise my sell/get out/run like hell price.