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A problem was encountered after upgrading the Wordpress software of this blog to version 2.8.4. Wordpress software is what made my blog possible. Unfortunately after the upgrade, it is no longer possible to add Tags when posting. These tags are necessary for visitors searching for information to reach my posts. Several suggestions were found in some Forums one of which was to deactivate the Plugins in turn. That worked, a Plugin titled Podpress seemed to be the cause of the problem. Everything is back to be normal for now!

We can now return to our business, covered call option trading. When I posted last, the market had several down days, my Trading Screen was full of red.

Yesterday, the Market was full of vigour and my screen turned almost total green. How about today? It was sort of in between, some green, slightly more red.

One of my opened positions, as in my previous post was an insured covered call trade of EWC.

The actual position consists of:
Short 5 Contracts NOV 27 Call / Long 500 shares (Covered Call Option Trade)
Long 5 Contracts EWC MAR 2010 27 Put (Put Option for Insurance)

I singled out this position in my portfolio because both sides of the above position were showing profits.
The covered call side was showing profit of $170.
The long put position was showing profit of $165.

While the figures are not very accurate and fees still have to be deducted, it means that both sides of this position may be closed out today and a profit pocketed.

I have no desire to close the position yet. I highlighted it to point out another aspect of the trade. It offers the flexibility to take profit whenever worthwhile to do so. It demonstrates how covered call options are one of ideal tools during times of uncertainty and high volatility.