Hope no one minds.....since I find this covered call stuff
fascinating, I decided to try and walk one through real time
for a while to see what I should/would do with it. I
started with $100,000 and bought the following. I tried to
keep the prices as close to actual as possible taking ask
for buys and the bids on the options for sells. I don't
have real time option quotes, so it could be scewed a touch.
Covered Call Strategies
Starting Equity 100,000.00
Shs
BUY:
ELON 37 11/16 26,381.25 700 Sept 35 5 7/8 4,112.50
RMBS 84 3/8 25,312.50 300 Sept 85 8 3/8 2,512.50
JDSU 121 1/2 24,300.00 200 Sept 120 8 7/8 1,775.00
QCOM 61 1/4 24,500.00 400 Sept 60 5 2,000.00
Portfolio Cost 100,493.75 10,400.00
Net Cash on Purchase (493.75)
Cash from Options 10,400.00
Net Cash 9,906.25
Percentage from Options 10.35%
Sorry about the formatting that is one thing I have never
mastered here in the confines of SI.
-SE
PS - Since I only think I am beginning to understand the
theory and nuances of this strategy, please anyone feel free
to get out the 2X4 and wake me up if I am doing or do do
something really stupid. It could happen! :)
SPS - V...it appears I have made 10% roughly this month.
Where did you say the beach was? |
