Hi Bruce,
The only reason you are handcuffed is because of the time frame. I would assume we will have a correction or several between now and Jan. 02. I would buy back the 65's for about $40 per and sell the little bastards in the year 2002 for about a $20 gain and just wait out for a correction. Now, the key here is this, you take your $20,000 dollar gift and put that to work making money in the meantime. Now, see, you have gone from being handcuffed to having up to $40,000 on margin if you desire working for you.
Now, this the beauty of CC writing. Now, tell me at 15% ( we won't use 20% for the sake of being conservative) what is $6,000 a month compounded for about 21 months! About a $150,000 my friend. Now, you have gone from being handcuffed to kicking butt.
The above is based on the assumption you wrote 10 contracts. It still does not matter because we are still talking percents.
One of the most underrated aspects of Call Writing are it's ABILITIES, one, flexibility and two ability to kick butt!
V |
