SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: jaytee who wrote (13727)6/26/2001 1:55:01 AM
From: Mathemagician  Read Replies (1) of 14162
 
Is your motive to buy @ 15 ( if you got in now), sell 12.50's for july (one month out) for 3.50? Then, if called out (likely, at 12.50) you would have a buck left on your 15.00 investment, or about 6 2/3 percent?

Is it me, or is the return closer to 9% if assigned?

Cash out when establishing the position = 15 - 3.5 = 11.5
Cash in at assignment = 12.5

This is equivalent to buying at 11.5 and selling at 12.5, for a return of 8.7%.

M
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext