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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: JohnM who wrote (758)5/23/2001 6:30:44 PM
From: Uncle Frank  Read Replies (2) of 5205
 
Hi, John. Where is everybody? I can't believe no one has responded to the query you posted this morning, but I'll give it a try.

I think your approach on what amounts to a buy-write on nufo is well thought out. The most important thing is that you've researched the stock and want to own it. The premium looks rich, due to nufo's high beta, the return if called out is excellent, and if it dips at expiry, you'd have a nice little hedge. You presented yourself as a novice at cc writing, but you've set this play up like a pro.

duf
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