Today is January 1st of 2010. That being the case, the U.S. market was closed. Today, however, is also two weeks from options expiration for January options. So I will be attempting to sell options against my stock.
The only stock that I have with a position of 100 shares is CPLP, so I will be selling an option against that stock. I know that I have been saying that I would not be selling CPLP because it is a high dividend paying stock but I am not selling it directly. What I am doing is selling an "insurance policy" to someone else that if they buy it and the stock I have exceeds the strike price of the "policy" they can have it at the strike price, no matter how high the stock price goes.
I have been expecting CPLP to reach $10.50 like it did in late October. But because it pulled back under $9 and the climb back has been slow, I am not as convinced that it will reach $10 before options expiration. It could just be because of the winter holidays, but I am willing to take the risk of selling an option at the $10 strike price. The Stochastic indicator is in the overbought range but I don't think it will stay up here that long. That is my opinion, you can take it or leave it.
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