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

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Herman J. Matos who started this subject	12/3/2003 6:02:16 AM
From: daryll40	Read Replies (4) of 14162

I am new here and need some help! I currently own 3000 shares of National City Bank, (NCC) and have owned them for years and years...so my basis is very low compared to today's $34 price. From a tax perspetive, I cannot have the stock called. That being said, I decided to "play" with covered calls and wrote 10 calls against 1000 shares in October. At the time, the stock was at $31.50 and I received 75 cents per share for 1000 shares on the January 32.5 calls. Needless to say, the stock is now near $34 so I am about $750 underwater to my breakeven point of $33.25 ($32.50 strike price plus .75 premium received). What should I do? Sit tight until January, and see if it pulls back? Roll out to April, paying out $1.85 per share to buy back the Jan calls and taking in $2.30 per share in selling the April 32.5? What would you folks do? Daryll40

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next