Monday, April 16, 2007

Citigroup C up on earnings

Citigroup C up on earnings, that's the good news. The bad news is my delta approaches zero because the short call is deep in the money. In plain English, it means I sold the call, and the call owner is making the money on the rise, not me. Such is the life of a covered call writer.

Volatility is back to pre-correction lows. This is not so good. The tax deadline passing also means the end of the IRA deadline contributions. So I am cautious, as almost always.

Positions: BA, FLR
Hedged: C, CHRW, GDX

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