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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Allen Furlan who wrote (3643)4/12/2002 10:57:45 AM
From: BDR  Read Replies (3) of 5205
 
<<It would be interesting to know the strategies behind the positions posted on this thread.>>

To get called out (just to take a different position from dUF)

For example, today:

bought GMST @ 10.15
sold QLFKU @ 4.20 (Nov 7.5 calls)

If called out in 217 days, return is 25%
Breakeven 5.98 (40% downside protection)

Could someone with access to a probability calculator run the numbers on that for me? The probability calculator that McMillan's site provides won't run on my Mac, but I think the odds are good that I will get called. (Of course, I thought that would also be the case when I bought BEAS @16.70 and sold June 15 calls @ 5 last November)
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