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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: William who wrote (1331)	7/5/2001 8:05:57 AM
From: Eric Berry	Read Replies (3) of 5205

WIlliam, I'll be the first to admit that buying 1 measly option for 65 bucks was not the best move, but again, I was trying to start really, really small. Please tell me if I've got this scenario right: 1. I buy 200 shares of GX @ 9.62 = 1924 + 12 (commission) for $1936 2. I write 2 AUG 10 calls @ 1.25 = 250 - 30 (commission) for $220 If not assigned, I make $220, and have 200 shares of stock. If assigned I sell 200 shares for $2000 - $45 Assignment fee - $30 Commission to close option - $12 Commission on stock = 1913 (for a loss of $23 + my $220 premium)?? To be honest, I was really interested in long term LEAPS, but since at this point, I've only been approved for Level I trading, I thought I would try this first..... Thanks again for all your help..... Eric

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