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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Thomas Tam who wrote (3701)4/25/2002 5:23:16 PM
From: Allen Furlan   of 5205
 
Thomas, fwiw, from a pure return on investment point of view the sale of puts could make sense here. I put order in this morning when bid was .70 on May 17.5 puts. Received .90 and have no idea why price was above my willing to sell price. My margin requirement is about $2100 so the $900 proceeds will be a handsome return if stock firms up. Of course leverage has much greater risk but I am willing to own tyco at 16.6. I think you might still get .65 or better if stock takes another dip.
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