William,
(RE: selling calls)
I respect your conservative nature here. I sold PUTs however, which is a different matter than selling calls.
As you know, It is more like buying the shares itself.
If the stock goes down, I get put the stock. Which means I have to buy it at the strike price ($55/share). However, I collected more than $6 per share on the sale of the put, so it is like going long at $49/share.
If the stock stays above $49 for the duration, I will have made money. Since there is over $2 in time premium on the options, I don't believe they will get put to me, however, strange things can happen.
I believe that the stock will be at an all time high by 3rd Friday in February, so the sale of Puts makes sense.
I have never sold a call, but I have owned calls (long), especially leaps. I currently hold a few Jan 2001 45s and Jan 2002 50s for example, both of which should do quite nicely if DELL appreciates over the next few quarters.
It still makes sense to have a major position in DELL.
Easy to sleep at night.
OT:
I have a new CD available.
Solo Piano work
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Craig |
