Patsy---covered calls wouldn't have worked with Broadcom since it was 60 back in Feb. Do you realize that just one call I bought, the August 60 Call for which I paid 1400 dollars several months back is now 8900 dollars-----bid !!! and for the 1400 I paid, someone was willing to give up 84 points on the stock or 800 % on their money if they chose to buy the longer option. No---if you really think a stock is a monster----to sell it's upward potential for a pittance is crazy.
Please read O'Neill's book and take it from someone who has made over 300 option trades ytd--------the real money is made by those who buy options especially if they are willing to fork over more money to buy a further time period out----e.g. a time period which encompasses "AN EARNINGS REPORT !!!"
With Broadcom, if you didn't make the 18 point move today-----you could have been satisfied with the 25 point move from 2 weeks ago when we hit 100 up to yesterday's 125.
I bought more "calls yesterday and this morning--- August 125's, yesterday the price was 14 5/8 or 1462.50 a contract, this morning about 10 CDT, the same contract cost 1587.5 (15 7/8) and they are good until August 20th----not just one day; those same calls now will sell for $2637.50 apiece----that is the 11 points of which you spoke in one day------pure profit; the August 110 Calls purchased for $1187.5 about 3 weeks ago now are worth $3750 apiece-----sure looks a lot better to me than putting up $11,000 to make $1100.
Has anybody here who has held BRCM for more than 6 months made only $1100 on their investment-----I think not----especially when anyone with 100 shares made 1800 today, $850 yesterday, and $487.50 the day before-----you are not talking about some "dead in the water stock" here in which you need to find other ways to "make some money"----you are talking about one of the hottest stocks in the market which has essentially risen from about 23 1/2 to 144.56 since Sept 1 of last year. that is a 6 bagger in 10 months !!!------500 percent on your money since Sept and maybe only a double since the last earnings report-------how could you possibly sell away that type of potential ESPECIALLY PRECEDING AN EARNINGS REPORT, for $1100 ???----that's what my options gained since this morning! and yesterday the other options appreciated ---the August 110 and August 115 more than $1100 in the last couple of day and more than that over the last three weeks, much more. The secret to "buying calls" is buy them with an eye to including a BRCM earnings report-----and try to buy them when the stock dips during the lulls in between----you will make more than 1100 profit if you include an earnings report with BRCM and it won't cost you 14,400 to make that 1100-----maybe just 1500 like I spent this morning BEFORE the report------because no matter what the Fed did, BRCM was going up when the earnings report approached----it just started the partying early. If you want to sell calls, buy Microsoft and sell those, you might still own your stock when the calls expire, with BRCM, you'll just be standing there with your 14,400 plus 1100 while someone else walks away with your stock and about a 4000 profit besides upon executing his call. |
