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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: FaultLine who started this subject	6/21/2001 4:05:02 PM
From: FaultLine	Read Replies (3) of 5205

The little rally today is waking up the writers and buyers. QCOM has risen sharply today, up 9% to 52.30 with a corresponding inflation of premiums sooo I just sold QCOM JUL 55 for 3.20 (up about 1.50 today). If called: (55 - 52.30) + 3.20 = 5.90 -> 12% (ok) If unchanged: keep the 3.20 and the shares Breakeven: 52.30 - 3.20 = 49.10 -> 6% (so-so) Also sold CSCO (17.80) JUL 20 for 70 cents. If called: (20 - 17.80) + 0.70 = 2.90 -> 16% ROI (OK, good) If unchanged: Keep the 70 cents and the stock -> 4% ROI Break even: 17.80 - 0.70 - 17.10 -> 4% (nil) (re csco: what the heck, it has just been lying there...) I'm waiting for NTAP to make a little move up before writing any calls on it. --dfl

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