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Strategies & Market Trends : The Covered Calls for Dummies Thread
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To: FaultLine who wrote (1538)7/19/2001 7:27:55 PM
From: Thomas Tam  Read Replies (3) of 5205
 
Very complicated strategy this am

Bought 1000 SEBL at 35

Sold 10 July 35 for $1.55
Sold 10 Aug 35 for 3.9
Sold 10 Jan 50 3.6
Sold 10 Feb 50 4

Bought back July 35 for $.50 = net $1.05
Sold 1000 SEBL at 36.72 for net $1.72
Bought back 1000 SEBL at $36.15 (too soon to get covered again)

So Long 1000 but short 30 calls at varying strikes. Took in $11.50 in premiums still and netted $2.77 minus commissions.

Now with SEBL at 33, then I'm down $3.15 on common, but up on the shorted calls. That was a fun 15 minutes this morning. Looking to buy back the calls as they lose their premium. I was debating whether to be totally naked on the calls, but I kept hearing UF in the background and decided to have a little coverage.

Later
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