<<I statement only pertains to those who desire to buy back rather lose their stock. Yes, let them just call the damn thing and reassess.>>
I know what ya meant. I debated rolling up in my rmbs today but said screw it...I am playing the casino. The object is to make money....collect premium. Well, I didnt want to buy my rmbs calls back for $8, only to write them for a little higher strike price and gain $2 in premium. I'd rather let the stock get called and not spend a penny. I paid $70.50, got $6 for the $75's, so I made $6 on pemium, $4 on stock, or 14% overall. I will now re=evaluate, just as you said. I will buy rmbs back......maybe lower, maybe higher, and will write CC's a little bit OTM, as I think rmbs is going higher so i am willing to maybe take a little less upfront in premium but have the stock called at a higher price....
anyway.....just trying to keep things simple. I mean, if you do the math, you are absoltely correct. If you can collect 5 - 10% on your money monthly, it's just a no brainer. It's when things go sour that ya need to know what to do.
have a great weekend...you and the wholeporch
keith@takingitdaybyday.com |
