How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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

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To: JungleCat who wrote (13492)	1/27/2001 1:38:14 PM
From: Herm	Read Replies (2) of 14162

Hello Again JungleCat! Let's say for instance, MU is trading around 45 today. The feb 30 contracts are going for around 16. If I were to write 10 contracts, I would be paid $16K. But then, there's a very high probability that my shares will be called away, even if the stock dropped down to 40 before expiration. Granted, I would have made an additional 6K. Or why would I want to pay 16K to have the right to purchase the shares at a later date. You recall your example with MU? Here are some other free resources for buy call equity strategies designed to test investment scenarios at expiration. Buy Call Equity Strategy Program (Online) Download Version Available! This interactive worksheet was designed to test investment scenarios at expiration. Enter or change your position on the "Required Inputs" page to see the different outcomes of the strategy. 209.15.73.188 Use the elevator scroll tool on the right side to adjust the lower view panel depending on your screen resolution!

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