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Strategies & Market Trends : The Covered Calls for Dummies Thread
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To: TimF who wrote (4727)2/19/2007 1:19:20 PM
From: Jerome  Read Replies (1) of 5205
 
>>>would not most of that already be reflected in the current price.<<<

I think not...but here opinions vary.

>>>It might make more sense to do the buy write before the report<<<

Lots of different way to manage a cc.

example....suppose that you would like to net a 3% gain from a covered call write one month out. (including all commissions).

In this reporting period stocks that meet or exceed expectations move upward between 4 & 8 per cent. So if HPQ moves up 4% on the earnings report, I will have two choices.

1) Sell the stock outright (I was looking for a short term 3% gain)
2) Write a covered call at the next higher strike (45)

There is no exact way to manage the situation....

JMO....Jerome
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