OPTION WHEEL IN ACTION – 50% potential return
STRATEGY: Sell cash secured put, get shares, create covered call, REPEAT…OPTION WHEEL
NEW ALERT Adjustment: SELL SDRL January $4.50 Covered Calls @$0.50 for each 100 long shares to lower cost basis to $3.00.
SDRL shares were originally assigned at $3.75 from the May option sale to buy stock at major 15% off discount. http://www.bullseyeoption.com/trade-alert/new-trade-alert-may-2nd-seadrill/
A July covered call sale for 25 cents lowered stock cost to $3.50.
Today’s rally presents the opportunity to sell covered call for $0.50 to lower cost basis once again now to $3.00.
50% return if stock above $4.50 and called out at expiration January 20th.