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Strategies & Market Trends : Covered Calls For Income Production

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To: J.B.C. who wrote (10)1/16/2015 11:37:31 AM
From: J.B.C.  Read Replies (2) of 32
 
Trade for this test account and for real:

ISIS Stock Cost Option Cost Days to expiration Strike price Month
400 Shares 68.29 10.5 182 70 July
Annualized called return =(((strike price-stock cost)+option cost)/stock cost)*365/Days to expiration (%)
Annualized rate of return if called 35.9%
Static call return =Option Cost/Stock Cost*365/Days to expiration (%)
Annualized rate of return if static 30.8%
Downside protection =Option cost/Stock cost (%)
15.4%
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