SLW

We hold 800 shares with an adjusted cost basis of 11.75 against eight May 18 calls that we shorted for 0.64.  The covered write limits our upside participation above 18.64, so we may try to buy May 19 calls to get back in the game:  not immediately, however, because Friday's high came within pennies of a Hidden Pivot target that should give way to a correction of this by-now parabolic rally. _______ UPDATE:  Do nothing further right now, since I don't fancy covering a covered write when the underlying stock is in a parabolic move. I might have advised doing so earlier if I'd noticed that the April 15 high had impulsed above the 17.80 peak notched on January 11 (see chart). Instead, I was asleep at the wheel, missing archival-quality camouflage that became manifest on the $1.03 pullback that followed this very subtle breakout. 

We hold 800 shares with an adjusted cost basis of 11.75 against eight May 18 calls that we shorted for 0.64.  Let's take advantage of the market-makers' propensity to rip off the public on the opening by putting in a lowball bid ourselves to cover the calls:  0.32, and you can make it a day order. _______ UPDATE:  We'll put this one on the back burner for now, since time is surely no enemy of the covered writer.

Our 800 share position is showing a paper profit of more than $5,500, and we'll have the option of letting it run regardless of whether the eight May 18 calls we sold for 0.64 against the shares expire in- or out-of-the-money. By exceeding our Hidden Pivot target at 17.25 yesterday, the stock is implying more upside potential to as high as 18.94.  We'll have left $240 of would-be gains on the table at that point, but that sum would  represent less than five percent of our total profit at that price. _______ UPDATE (April 8, 10:07 a.m. EST):  Stay tuned for further guidance, since it may be worth our while to cover the calls if volatility gets pummeled.  At the moment, however, option volatility has shot up as a result of today's weakness.

We hold 800 shares with a costs basis that has been reduced to 11.75 by several covered writes done in succession.  The stock is working on a minor bullish impulse that could hit 16.01 if a midpoint impediment at 15.63  gives way.   Let's be prepared by offering eight April 17 calls short for 0.26, good till Friday. That price is a bit rich, so be prepared to adjust on-the-fly if I give the signal intraday.  ______ UPDATE (11:11 a.m. EST):  Cancel the offer, since time decay ahead of a three-day holiday weekend is causing the April calls to shed premium too fast to make them worth selling.  Instead, offer eight May 18 calls for 0.66, good till canceled.  The sale is predicated on a 17.25 target. _______ UPDATE (April 7, 10:13 a.m. EST):  Short the calls on the current bid of 0.65, taking a penny's discretion. (Note: With SLW on the move at the time of the update, the worst you could have done was 0.64, so we'll use that price officially.)

We shorted eight March 17 calls for 0.40 when they traded as high as 0.43 on Friday.  They go against 800 shares of stock we hold for 12.15.  That cost basis is attributable in part to the $320 gain we booked on eight February 17 calls shorted a while back for 0.40. We'll continue to build edge into this position one month at a time.  For now, though, do nothing further. _______ EXPIRATION UPDATE:  The calls expired worthless, effectively lowering our cost basis to 11.75.  We'll back off our covered-write program for now, since remuneration for shorting the 17 strike is currently half of what we've been getting.

Let's roll our covered write into March, shorting the March 17-February 17 call spread for 0.40 or better.  We currently hold 800 shares with a cost basis of 12.55 against eight February 17 calls shorted for 0.40.  They can be covered for 0.01-0.02, but I'd suggest shorting the March calls first, since there is little risk of the Febs running away.  Check with your broker before doing so, though, since, technically speaking, it would leave you naked short calls intraday.

We are long 800 shares with a cost basis of 12.55 against eight February 17 calls shorted for 0.40.  No further action is suggested at this time.  This is a long-term play, and we therefore won't allow the stock to get called away. However, if the calls finish in-the-money, we'll have $4,000 of profit built into our position.

We are long 800 shares with a cost basis of $12.90 against eight January 17 calls shorted for 0.80.  It is time to cover the calls, since they can be bought for as little as 0.05.  Do so, shorting eight February 17 calls at the same time for 0.40.  If successful, we'll have rolled the covered write and reduced our cost basis on the stock to 12.55.

When the December options expire today we'll hold 800 shares with a cost basis of $12.90 against eight January 17 calls shorted for 0.80.  Although the calls are likely to expire worthless, further lowering our cost basis, they'd be worth covering right now if we could get them in for 0.15.  Accordingly, I'll suggest bidding 0.15 to close, good for the day. If the stock slips below 14.50, however, lower the bid to 0.10 and leave it in through Monday.