Listening to your call last week, when talking of USO you said if you were up 10-15-20% you might want to consider taking profits, I’m currently up 19% and considering it. I was thinking of selling a covered call to generate a little more off this holding on the way out.
If I’m not worried about being called out of it would i do a short term ATM or go slightly OTM and hope to catch a little more appreciation? If i go slightly in the money wouldn’t i be throwing away appreciation vs getting it on the sale of the call and having to sell lower than i am now? I’m having issues determining where a break even would be. At or In the money ensures being called out of my shares which is fine. slightly out of the money may not yield as much on the sale of the call but that could be free money if drops and goes in my favor.
Once i get my head around the strike price i’ll start looking at the implied volatility and Bollinger Bands for timing.