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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Sully- who wrote (656)	5/19/2001 8:54:30 AM
From: Mathemagician	Read Replies (1) of 5205

I sold the May $35 CC's on JNPR last month when it was trading right around $35. It had just recovered from the upper $20's. I got $6 or $6.10 (too lazy to check) for them. I figured I would uncover the next time it pulled back. LOL! That sucker & the whole market went straight north from there & JNPR really never looked back. With options expiration today, my CC play worked out to a $13.71 per share mistake, plus commissions. Don't be so hard on yourself. You netted 20% in one month. That's 240% annualized, without compounding. Or you could take the cash, buy some treasuries, and outperform the majority of mutual funds for the entire year. I wish all of my mistakes were that horrific! :) I suggest you try to remember why you entered the position in the first place. You made a conscious decision one month ago to forego any appreciation above $35 in exchange for guaranteed income and some downside protection. The maximum profit from your CC position was realized. If you view that as a mistake then perhaps you should reconsider writing CCs and concentrate on LTB&H (at least, on JNPR). dM

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