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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 9:07:42 PM
From: BDR  Read Replies (1) of 5205
 
Re: NUFO buy/write

That looks like an excellent entry point. The most important point about the trade is that you have researched the company and are willing to own the stock.

If you wanted an even more conservative/defensive trade look at the June 10s. They are going for 5 which gives a return on 10.7% if unchanged (i.e. exercised) and 35% downside protection using the calculator on the McMillan site. The June 15s yield less than that if unchanged and, of course, much less downside protection. Having been burned repeatedly by RMBS (how low can it go?) lately I am very interested in downside protection with more speculative issues.
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