How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: FRANK P. WARDA who wrote (9177)	11/25/1998 5:33:00 PM
From: Douglas Webb	of 14162

Dell is withdrawing right now, and it looks to me like there's support at $60. I would use that as my floor, and try to write calls at that price or higher, assuming I want to keep the stock. Since Dell is at $64.50, the $65 calls are about at the money, so they have the highest time value. If Dell drops to $60, the $65 calls will be very cheap to buy back, so this works out well. The Dec $65 can be written for $3.000 x 2000 = $6000 The Jan $65 can be written for $5.125 x 2000 = $10250 Both are nice profits even if the stock gets called away. Doug.

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