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

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To: jtig who wrote (11265)7/21/1999 1:06:00 AM
From: Greg Higgins  Read Replies (1) of 14162
 
jtig writes: I have just been examining the cc website to discover that LUV (Southwest Airlines) stock just split. It is selling for a bit over $20 and Sept 25 calls are 8+.

You're looking at last sale data. The last sale is from the pre-split trades. Southwest was a 3 for 2 split. Since it's now 20 and change that means yesterday it was 30 and change making a 25 call strike of 8 just about right. My screens show the AUG 23 3/8 CALL at Ask 1/4, so you're not likely to find a 25 to sell.

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