Calls and Puts for Income Message Board

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Strategies & Market Trends : Calls and Puts for Income

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From: Jerome	9/19/2008 7:00:20 AM
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A small time play for a stabilized financial market. Washington Mutual ...WM ...closed at 2.99... the bid /ask is 3.74/3.84 Citigroup or some other financial company will be in the market to buy WM. My suggestion here would be to buy WM somewhere around $4.00 a share and write the OCT 5's for .40/.50... Who ever buys this company will buy it at some premium to the trading price ($5.00 to $7.00)so the covered call looks like like a decent opportunity. WM being on the list of unshortables makes this a better play. Note... I own this stock and have written the Sept 5's for .40 a few weeks back.

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