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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: FaultLine who wrote (93)	4/20/2001 10:14:39 PM
From: Uncle Frank	Read Replies (1) of 5205

That's quite a saga. I took a different path, which I'll outline for comparison purposes, and as you did, scale it in terms of 100 shares and ignore tax and commissions. 2/28: Purch. 100 sh. @ 52.75 -$5,275.00 3/1: Wrote March 65s @ 3.25 $325.00 3/9: Closed March 65s @ .3125 -$31.25 3/20: Wrote April 65s @ 3.25 $325.00 4/3: Closed April 65s @ .375 -$37.50 4/12: Wrote April 55 @ 1.85 $185.00 4/20: April 55s expired $0.00 4/21: 100 sh. called @ 55.00 $5,500.00 Return $991.25 18.80% I'd have made $1108 per hundred shares if I had held the lot and sold at today's closing price, but I wouldn't have <gg>. It's kind of a push on qcom, but in the interests of full disclosure, the comparison is brutally unfavorable when I look at the sebl and gmst shares that got called today. A few points, in summary: 1. I made money on both of those transactions as well; just not as much as I might have. 2. A surprise fed rate reduction, which was at the root of this week's improbable rise, won't happen very often. 3. With the possibility of positive momentum returning, I will not write May strikes as close in as I did this month. uf

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