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

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To: RCVJr who wrote (7139)3/22/1998 8:11:00 AM
From: blankmind  Read Replies (2) of 14162
 
- There's one more downside to writing covered calls that I completely forgot about.

- If you write a April '98 $15 covered calls on Vivus (now at $10); and the price of Vivus goes back to $40 on April 14th when earnings come out; your upside is severely limited.

- Instead of being up $25 ($40-15) per share. You'd only be up like $6 (15-10+5).

- I think. Am I correct?
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