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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Mathemagician who wrote (1514)	8/29/2001 4:29:28 PM
From: StockHawk	Read Replies (1) of 5205

for a relatively conservative play, write a SEBL Jan-02 30 put for 4.2. Your effective purchase price is 25.8 if assigned so you are protected against a 37% decline in the underlying. If SEBL stays above 30, your period ROI is about 16% Hi Math Man, You have presented several very thought provoking possibilities on this thread, and I have often copied them down for later study. Today I was reviewing this one, which looked pretty good at the time. Of course, a lot can happen between now and Jan. but right now the drop in SEBL would have completely wiped out the premium, and paying $30 for a $22 stock would hurt. Plus SEBL could keep falling. It might be interesting to follow this play with the strategy you outlined in post 1881, the "Money Generator." That strategy begins by selling a naked put, as was suggested with SEBL. If the stock is put to you, the next step is then to sell a straddle/combination. Have you been watching any of the plans you have outlined, and if so, how are they playing out? StockHawk

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