How To Write Covered Calls - An Ongoing Real Case Study! Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: JoAnn McCracken who wrote (6306)	1/5/1998 7:41:00 PM
From: Douglas Webb	Read Replies (2) of 14162

Hi JoAnn. I'm glad your Buy-Write worked out for you. If I recall, you wrote March calls, right? Since you bought another 300 shares at $10, and you're waiting until March to cash in on the rest, you may want to consider writing some January 10 calls. Look at: webbindustries.com The first option listed is the Jan 10. Assuming the price doesn't change much tomorrow morning, you can write the call at $1.3125 and reduce your net 13%, and probably get called out with a total 13% gain in two weeks. I figure you'll get nearly $400 profit from the deal, whether VVUS stays above $10 or not. (You'll get the $400 when you write the call, and if you're called out at $10 that's what you paid, so you don't give any premium back.) Doug.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next