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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Hepps who wrote (4903)	4/15/2007 4:22:43 PM
From: im a survivor	Read Replies (1) of 5205

Agree. And I do play the bigger ones like qcom and etc.... But this is an interesting one to look at. The news I have been reading has been both positive and negative...some are saying the drug will get fda approval on the 15th, while others say they will have to do further studies. I look at it like this. Stock is all over the place but was at $5 and ran to I think $25. Currently at $17.75 and you can sell the may $10's for around $2bucks. That is a very nice premium and stock would have to fall alot(it could) to be assigned, but if assigned at $10, adjusted cost basis would be around $7.75 - $8. So, the question is do I want to take very nice premiums in exchange for possibly of having to own DNDN for about $7.75. Then write CC's against it if assigned, and if the PPS and premiums allow for CC's. Anybody else gonna play this? I'm still curious on Bridges play I commented on earlier as it seems to guarantee a profit, assuming stock stays within a certain range and I believe the range was from $10 - $30...would like to hear more opinions on it or any opinion on how to play this or if it is a bit too risky.....Bridge, Unc....any of you guys playing this this week?.TIA....

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