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: John B. who wrote (4527)	9/9/1997 5:49:00 PM
From: Vol	of 14162

John B., sounds like a great strategy. A weak link i see is if the stock were to plummet then you could lose alot or all of the value of the far out call you bought. would the following work: stock price 85 buy jan 98 call at $75 for 16 buy protective jan 98 put at $70 for 2.5 sell oct call at $95 for 3.5 now, if the stock plummets and doesn't catch up by jan 98, you have the protective put to limit losses. hopefully you could sell oct, nov, dec calls, then sell the jan call you purchased for a profit too! if stock goes down, the put would increase in value and ofset some of the loses in your jan call. make any sense?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next