F and covered warrents is working for me

You can buy or sell short term options on Ford. These are called “warrents” but are basically options with short time frames. Like a week or two. So for the past few months, I’m been selling the $12.50 strikes against my F shares, just going out a few weeks at a time, and sometimes rolling them over to go out another 7 or 14 days when F is trading over $12.50. (Yesterday F was $12.51, so I bought back my May 31st $12.50 options and sold the June 14th $12.50 options). It works for me, and gets a very decent return. And of course the spring weather has messed me up again, as usual. The hot weather got me to put away the Hendricks, get out the Taquernay, and buy limes and tonic instead of vermouth and olives. Of course, then the weather turns cooler again. There oughta be a law.

1 Like