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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Bridge Player who wrote (4882)	4/15/2007 2:28:12 PM
From: im a survivor	of 5205

Not a bad idea.....I was thinking of just selling some May 10 puts for the $2+premium and if it drops that far and I am assigned at $10, cost basis would really be $8 and I assume I could then write CC's on the stock if it is assigned to me at $10. Any opinions? How are others playing this? I understand the below and assume you are talking about selling the put outright as well as the call, without owning the underlying stock, dndn, or do you own the stock? <<For the aggressive traders willing to accept risk, I like this play this Monday morning, on Dendreon DNDN, which has just received FDA approval for a cancer drug. Sell a May 17.5 put for $3.80; sell a May 25 call for $3.40. Net premiums 7.20. Profitable at expiration everywhere between 10.30 and 32.20. Warning: stock is extremely volatile.>>

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