Sold to open ENDP 7/1 expiration $17 strike calls

action

Sold short 10 contracts of ENDP 7/1 expiration $17 strike calls at $0.30. Total proceeds after commission are $284.55 or $0.28/share.

strategy

After the successful conclusion of last week’s covered call, I am going back to that well. The stock is getting a big boost today from the news that Endo Pharmaceuticals received a patent on Vasostrict®. This pushed the stock to $16.20 today, up from yesterday’s $13.69, a gain of more than 18%. In addition, those big moves obviously raise IV, which is good for call sellers. But, while this certainly is good news, I don’t think it will immediately reverse all the bearishness around this stock. So, I picked the (relatively close) $17 strike for this week’s short calls. Hopefully the stock will hold below.

June 28, 2016 at 1:48pm · ENDP · sell to open · options


Previous:Don Luskin’s amazing 180° turn on free trade
Next:Bought to close MU 7/1 expiration $15 strike calls