jack...you should trade (assume you are doing cc's) after ex dividend date usually around first of the month not right after normal expiration..
--- In ConservativeOptionS
>
> Bill,
>
> I began to trade TLT in early May, 2009 as
> the fixed income portion of my IRA account. To enhance the return I sell
> calls against my position each month. (We sell the call with the
> greatest TV, Time Value) This idea was borrowed from the moderator of
> another yahoo group I am a member of. I liked TLT due to the volume and
> and liquidity of the options. The on-going trade has worked very well.
> So far I have never been called early for a dividend, receiving it each
> month. When called away I replace the position. Often late on expiration
> Friday, if in the last few minutes of trade it is apparent we will be
> called the new positions are added. I figure I will capture an extra few
> days of TV erosion over the weekend and a good use of cash since I
> would want to re-enter the position on Monday.
>
> My concern will be the FED-HEADs starting
> to play with interest rates. We basically have no place to go but up
> from where we are currently and that will of course affect TLT. I am
> looking at TBT as a short term trade ahead of FED meetings. TBF, a
> non-leveraged ETF, would be preferable to me but the volume is low and
> open interest in the options is almost non-existent.
>
> I have looked over the site you suggested
> (www.oldschooloptio
> TLT, perhaps because it is an open trade? Without exposing information
> you have agreed not to share, could you write a little more about how
> you are using TLT and what the plan will be to cope with interest rate
> increases?
>
> Regards and
> great trading,
>
> Jack
>
>
>
>
>
> --- In ConservativeOptionS
> <uliv2003@> wrote:
> >
> > When the SPX made a recent high, there were only 138 components
> following suit. Our risk management tools have us in TLT covered writes
> until the market corrects. IYY IWN IWM TRAN UTIL IWS all failed to make
> new highs.
> >
> > See www.oldschooloption
> >
> > For more info
> >
> > Regards,
> >
> > Bill
> >
>
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