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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: im a survivor who wrote (4839)3/13/2007 2:07:04 PM
From: Uncle Frank  Read Replies (1) of 5205
 
>> have all of my long shares covered with the April 42.50's.

>> any strategy that will enable me to not have to buy back my calls, but not get called away if qcom is above 42.50...

That would be quite a trick. Let me know if you find a solution, as I'm covered with the April 40 strike.

One approach might be rolling your calls up and out. That means "trading" your April 42.50s for something like the July 50s. At the current prices, the trade would cost your around $.40/share, but the delta will come down as we get closer to the expiration of the April calls.

duf
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