How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Herm who wrote (3069)	7/14/1997 10:55:00 AM
From: Ofelia Cuesta	of 14162

Herm, What I was getting at is this: I played the July calls earlier this month and as of last Thursday was out of them and owning 500 shares of VVUS common. Friday comes around, the MMs drop VVUS to 28 3/8 and the July calls fall along with the stock price (for example the July 30 call closed 62% below its Thursday closing price). Since I am expecting VVUS to go up to $40 (or at least bet. 30-40) and I know this is just a game by the MMs, as they drop the price to 28 3/8 I step in and buy 10 contracts of July 30 calls expecting to unload them prior to expiration this coming Friday. This way making a few extra bucks this week. I would still be holding on to my 500 shares of common all along but just making extra money on the side.

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