Subject: Re: Option Volatility
I'm going back to sleep now - wake me up next January and let me know what happened.

Sounds like you did a fine job overall. It's hard to see a bad outcome.

But that last comment...I suggest you keep an eye on the market rather than entirely ignoring it. Or at least half an eye.

It is extremely common for there to be a price drop before expiry, and they frequently don't last all that long. A price drop frequently offers the opportunity to close the position early, making (say) 75-80% of the maximum possible profit in (say) less than half the maximum elapsed time. The annualized rate of return is of course much better, and you no longer have that short call contract "hanging over your head" as it were. Plus, if the price gets lofty again, you can do it all again.

For example, during the late October price dip I was closing calls I had written last August, realizing a nice (but not complete) profit. And I started writing new ones again this January, effectively getting paid again to commit to selling the same shares again.

Jim