March Trades

Trade History:

• Queued 5x DNDN Strike 11.00 Covered Call, at 0.60.
• ROI: ~4.08% if it expires worthless, -17.28% if assigned.

Gut Check:

• I bought DNDN at 13.95, before their review of Q4 earnings which basically sank their stock. If I sell now, I'm realizing a pretty sizable loss that would wipe out a lot of my gains over the last few months. This was one of the risks that I understood to be there when I first started options. It's only now that I've really been tested. Have to try not to panic or throw the baby out with the bathwater by stopping options trading altogether.
• It's not really hopeful that the stock will go back to 14, but in the meantime I think I can still make a bit of money each month with some cautious Covered Calls, assuming they don't get assigned.
• The plan for now is to hold DNDN and make a bit of money each month until I can sell at a loss that is offset by the gains made off it. Even at just 4%, I'm slightly ahead of my monthly target to beat my mutual funds.
• If DNDN's price surges, I'll have to buy it back at a slight loss and re-sell at a higher Strike.