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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Uncle Frank who wrote (4778)3/7/2007 8:38:31 PM
From: JGoren  Read Replies (2) of 5205
 
Good point UF about selling before expiration. The problem is with the NOK license expiration coming up April 9, it is likely that it could be volatile, probably down, but if there is good news, writing covered calls could put you big under water fast. The top recently was, I think, 54 on the MediaFlo news and rumors of possible settlement with NOK. Now, I for one, don't think there is a settlement until well after April 9, but I am a little scared to be short right now. I believe March is quadruple witching but April is not, so there is less chance the price will drop in April below the IQ max-pain price. I would love to take the premium, but haven't the guts to do so.
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