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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Dr. Id who wrote (638)5/19/2001 1:32:52 PM
From: StockHawk   of 5205
 
I had sold AOL May 50's for 2.10... the May 50's were selling at around 4.50... I noticed that the Jan 02 62.50's were trading at parity... Am I missing something?

Dr. Id, an excellent play. But since you asked for suggestions, and to have a little fun, how about this alternative. Instead of selling the Jan 62.50's you could have sold the ATM Oct 55's. Instead of taking in 4.50 you might have taken in 5.50 (or 5.40 or in that neighborhood). If AOL tanks you have a slight bit more protection and if it stays the same or moves up you could roll again and make another premium on January calls.

StockHawk
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