I bought DNDN this afternoon so I could sell a CC. I sold the May 15 call (UKOEC) at $5.10. So I made $510.00 on this trade so far. So after May 18th when the call expires I will sell my stock shares. At that time I will add or minus the difference in the price of the stock from when I bought it.
DNDN was/is on a nice uptrend today. It was up $1.88 when I bought it. When selling a CC you always want the stock to be on a nice rally.
UPDATE 5-14-07: Ok this stock got hammered last week down $11.00 ($1,100.00), so I bought back my May 15 covered call for .05 cents ($5.00). So I made a little under $400.00 on the cover. I then sold the May 7.50 for .55 cents, making $55.00. I then bought 10 Aug 7.50 call options for .40 cents ($400.00), UPDATE 5-23-07-Aug 7.50 call is currenty at .80 ($800.00). Stock is up to around $7.00. I have to work around this to make my $1,100 loss back.
UPDATE 5-31-07: Dendreon Announces FDA Confirms Data Required for Provenge(R) Licensure..... WOOHO! I sold my 10 Aug 7.50 calls this morning at 2.40 for a 500% profit!!!!!!!!
This complete trade is now in the black big. I will figure out the total % gain after I sell the common stock. I may sell a June 10 CC for .70 to make $70.00 more.
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