Hey there fellas. And Ladies.
I own 500 shares of SVM, a stock that I don't see as very exciting in 2015. It's been a dud and whether it has an exciting future or not, I'm sort of mad at it. It currently trades at about $1.50.
I would keep it and just sell covered calls on it, but it's such a cheap stock that it's pretty worthless to sell 2-3 month calls on it. I would make like . . $30-40 in 3 months but I'd have to hold onto my 500 dud shares when I could just sell it and try something with a better chance at timely success.
Is it a reasonable strategy to sell some November $1 calls and make about $250, fully expecting them to get called away at expiration?
I guess it's part of a larger question about "options strategies for really inexpensive stocks."
What do you think?
Thanks a bunch
