Shares of internet retailer Farfetch appeared on my radar this afternoon and I opened a trade by purchasing shares at $51.95 and immediately selling ITM Apr-16 $50.00 calls for $3.30 which will provide an annualized return of 97% if the shares are assigned to the holder of the calls. As you can see on my Open Trades page, I now have 15 open covered call trades in place.
I have only been posting about my covered call trades for a very short period of time and so far, so good. As I remind myself in good times for the equity markets, one must not confuse a bull market with brains. It is easy to make money selling covered calls when the overall market is rising. If you are new to options trading, please bear in mind that it isn’t always easy in this space.