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

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To: George Sepetjian who wrote (7097)3/17/1998 9:55:00 PM
From: Sam2482  Read Replies (1) of 14162
 
Hi George,

I am sure that I am not the most experienced person on this thread but it seems to me that the logical thing to do would be to continue hold your current position. According to the prices that you provided there is still $2.215 worth of time value remaining in the APR 40. I would not liquidate until it was trading closer to parity. If you get called out your net ( excluding commissions ) would be 6.50 @ sh. If you liquidate now your net would be $5.375 @ SH. You must decide if you feel the stock will continue to rise and if you want to hold on to the shares. If so, wait until the CC hits parity and roll up. Just my opinion.

It is a nice decision to have.

Good Luck
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