Selling those short-term out of the money calls

Yes, it’s not without risk, but the ones we selected have had such a run that even the slightest deceleration in the runup will translate into profits. The profits get huge when the stock price stalls, even bigger when it falls..

Just an example, those February 290 calls on CMG which we called this morning. They could have been sold for 45-50 cents as long ago as this morning. Now, after hardly a 3% decline in the stock price, these options are toast, bid/ask is 16-20 cents…

With equal or bigger falls in BSET, TA, and LULU, and more time value decay, the profits of selling Feburary out-of-the-money calls would have been bigger still..