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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: EnricoPalazzo who wrote (212)	4/24/2001 5:03:27 PM
From: Mike Buckley	of 5205

Ethan, The fact is, I can enter into a transaction today where I pay $10... You're right. However, the flaw in your thesis is that you are applying it to two transactions, not one. From a practical point (to HELL with nitpickers! :), consolidating the first two transactions into one net transaction makes perfect sense but only in the case of the buy/write tactic. Maybe I missed something, but I thought the discussion was trying to arrive at one calculation that applied to all covered calls regardless of when the stock was purchased. --Mike Buckley

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