Strategies for Positions in my Company Stock

My company stock has advanced about 15% since the last earnings announcement.   The company will announce Q1 2013 results this week.  I'm prepared for a potential run up this week, and making a small hedge against a decline after the earnings announcement.

Here are the actions I have taken:

Placed limit exercise orders for stock options.   I have placed several limit exercise orders just 2-8% above the current price.  That way, I will sell of a portion of my remaining 2014 stock options if the stock price advances significantly.

Sold out of the money covered calls.  I have sold two covered calls at strike price above the current price.  If the stock advances significantly, I will receive a higher price for my shares.  If the stock declines, I will keep the premium for selling the options.

If the stock advances over 12%, I will consider purchasing LEAP put options to protect against a significant decline.   If the stock falls after earnings, I will leave the limit exercise orders for the stock options in place and wait until the end of Q3 2013 before modifying them.

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This is not financial or investing advice. Please consult a professional advisor.

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