"...seems that extra cheap commissions are a requirement and so far I have never seen actual numbers that show the actual $$ figures....Maybe I seem a little outa line with this but, that's the way I see it...sorry,"
In my personal Fidelity taxable brokerage account:
4/3/02
Bought 1000 GMST @ $9.54, commission $14, cost $9,554
Sold 10 GMST May 10 Calls @ $1.25, comm. $31.54, net $1218.46
Net invested capital $8,335.54
5/17/02
10 GMST calls exercised
1000 GMST called away @10, comm. $14.31, net return $9,985.69
[($9,985.69/$8,335.54) X 100] - 100 = 19.8% return on invested capital in 45 days (even higher than I had earlier indicated).
You will have to take my word for it about these trades because I am not going to send you my broker's confirmations.
"....but I'm not sure, was it worth the risk? only you would know..."
Higher risks tend to come with higher risks. There are much safer covered calls out there, but (surprise!) the returns are much lower. If you think covered call writing eliminates risk you must have gotten that from some of the bullsh*t artists you referred to in an earlier post. |
