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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Mannie who wrote (3508)	3/14/2002 9:16:41 PM
From: Victoria Walley	Read Replies (2) of 5205

>>Do you always write that far out? 6 months? No, I treat each issue differently depending on my goals and expectations. I write 1-2 months out for DELL and lately have been able to close out my calls ahead of time on a dip. Here's the repair I am looking at for TDW... I sold July 35s for $3.50 last month when the stock was at $35. Those calls are going for $6.80 now, and I would want at least $5 for the Oct 40s (have to wait for a few up days again for that). So it would look like this: +$3.50 -$6.80 +$5.00 = $1.70 net on the calls -Plus I would get an extra $500 per contract if assigned -It would take another 3 months to play out -I think TDW has the ability to go back to $50 if crude prices continue to rise (I think they will) I ALWAYS sell calls too early, unbridled optimism is not one of my strong points!

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