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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: FaultLine who started this subject	11/11/2001 1:20:09 PM
From: dbernet	Read Replies (2) of 5205

To the thread, I am a novice at selling covered calls, the title of the thread fits me. I want to sell covered calls on Cymer, one of my favorites, now trading at 22.47. I think it will fall to the 16-18 range by mid December, so I am looking at the December 20 calls. Schwabb shows the last trade as 2.75 and the bid at 3.40, the ask at 3.70. I am hoping CYMI will recover .50 monday or Tuesday and I want to place a limit order selling the call to take advantage of this, as I wont be able to watch the computer on Monday and Tuesday.. How much is the bid/ask on the call likely to move with the stock price? Also,(here is the dumb question)" what do sell to open" and "sell to close" mean? I am guessing that "sell to open" is what I want to do, but I am not sure. I read the intro and the first 100 or so posts, this looks like a great thread. McMillan's book is in the mail. I normally do my homework before I try something new, but I feel this opportunity is only going to be open the first of this week. Thanks and best regards, dbernet

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