Monday, August 29, 2011

Brief Alpha-D Update for 8/29/11

I'm really starting to think that options with weekly expirations will become a regular part of my portfolio.  The covered calls I wrote last week on GDX expired unexercised last Friday.  I sold calls again on GDX to expire this Friday.  I made no other changes. 

The advantage of using shorter expirations is that the option's premium decays more rapidly, i.e., the shorter the option, the more likely it will expire.  This should reduce my portfolio turnover in the long run if I keep refreshing the options with weekly expirations.  Only time will tell.