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Strategies & Market Trends : Calls and Puts for Income

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To: dealmakr who wrote (5495)9/29/2012 10:00:11 AM
From: CommanderCricket  Read Replies (1) of 5891
 
dealmakr,

I hope QCOR doesn't buy back much stock and bet they don't. They don't need to as the short position has an added incentive to cover their position. Dividend paying stocks don't make for profitable shorting.

They need to do everything they can to protect and grow the dividend. $0.20 a quarter is nice start.

In my opinion, the government investigation is going to be drawn out waste of time. The change is how Aetna and the other insurance companies reimburse is what needs to be watched. That's the uncertainty.

I'm playing it like this.

Own a few shares around $19 (these will be used to sell calls into the inter day pops higher) and have sold Jan 15 puts for $2.70. Don't see QCOR going much lower and it will probably go sideways for a week or two or until the company can provide further guidance. A slow trend higher is the best case as it will allow for capturing premium over an extended period time.

Good risk/reward at these prices

Michael

Keep it small though
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