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

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To: Herman J. Matos who wrote (1138)3/16/1997 4:12:00 PM
From: Aries   of 14162
 
RE: Herm's Position in ROST

Herman,

I've been following this thread, but with all the messages
things have gotten kind-a confusing.
I have retraced your steps as well as I could, and this
is what I came up with:

Date Action $$ for Action Day Close
---- ---------- --------------------- ---------
2/10 Buy 2C 40 MAR 6.125 -> 1225+40=(1265) $45.00 (pre-split)
3/7 Exercise Option $8000+29.95 = (8029.95) $27.750
3/11 CCW 4C 25 APR ??? ADD ??? $26.750
3/14 Buy 4P 25 APR 1/2 -> $200+Comm (240?) $28.000
3/14 BUY 4C 27.5 MAR ??? (???) $28.000

I summary, your current position is

A. you own 400 ROST shares (3/7)
B. you wrote 4 April calls (3/11)
C. you own 4 April puts @ 25.000 (3/14)
D. you own 4 April call @ 27.500 (3/14)

For the benefit of the thread, please clarify the various
prices paid and premies received. Also, I couldn't be sure
about the date(s) you bought the APR puts and MAR calls.

Cheers, Willy
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