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Friday, March 5, 2010



In researching for the next trade, the account came to a dilemma. Does the account trade for the next month's results or sell longer term calls for the opportunity to make more money overall since the strike price is higher?

The account is researching MBI. The market is currently offering calls at $1.00 increments for the May calls and only $2.50 increments for the April calls. Because of this, there is an opportunity to sell a call in May, receive some revenue, and have a decent amount of appreciation gain with it if the stock reaches the strike price.

Right now selling the May call in MBI seems to be a good play. We'll see what the trade looks like in two weeks when the March options expire.

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