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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Jeffry K. Smith who wrote (5034)	12/12/2009 11:16:56 AM
From: Uncle Frank	Read Replies (1) of 5205

Hi, Jeffry. Fortunately I've got one live play to keep me from total boredom. I picked up some CSCO on 11/12 at 23.30, and a few days later, I wrote CYQLN (Dec 24.00 call) at $.69. As of Friday, the stock is trading at 23.77 and the call's value is .19, so I'm winning on both propositions. I've placed a .10 limit order, and if it executes, I'll write a January call. But if CSCO happens to be more than 24.00 at expiry, I'll get called and harvest a pleasant 3.9% return in 5 weeks. Not a homerun, but a safe little play. Meanwhile, I'll wait for the dip before I commit any of my cash. duf

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