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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: EnricoPalazzo who wrote (404)	5/3/2001 5:08:21 AM
From: EnricoPalazzo	of 5205

P = Premium as a percentage of starting price. I have no idea what a normal value is, so I've shown a range from 1% to 5%. Currently they're very high. S = straight (i.e. results for just holding the stock) I know BRKA doesn't have options. Just as an example. Check out how great things get when you have P = 2%, even for so-so stocks like IBM. MSFT P (%) bags annual return 1 53 49% 1.5 97 58% 2 176 68 3 573 89 4 1840 112 5 5840 138 S 91 57 CSCO P (%) bags annual return 1 100 58% 1.5 183 68% 2 335 79% 3 1116 102% 4 3668 127% 5 11918 156% S 689 92% BRKA P (%) bags annual return 1 15 31% 1.5 26 39% 2 47 47% 3 151 65% 4 480 85% 5 1508 108% S 8 22% IBM P (%) bags annual return 1 7 21% 1.5 12 28% 2 21 36% 3 69 53% 4 219 71% 5 689 92% S 4 16%

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