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Strategies & Market Trends : Covered Calls

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To: Bazmataz who wrote (19)	5/4/1998 11:35:00 AM
From: tchphysics	Read Replies (1) of 86

I went ahead and took the bait on CLCX. The stock was up slightly this morning from Friday's close, but those June 12.5's were awfully attractive. I bought CLCX at 11 3/4 and immediately turned around and sold Jun 12.5's at 1 15/16. That represents a 15.53% return for me after expenses. If the stock is called, the return bumps up to 21.46%. Not bad for 45 days. The great thing in my opinion is that this provides me with a 15.6% downside protection from here. Using margin (which I did) the figures are double. Did anyone else make any plays today? I looked very seriously at ASL as a play for today but couldn't pass up the nice return on CLCX. GLM, the stock is doing great, but you are all correct in that the calls just are not offering much premium. Perhaps, because the market does not yet believe the stock will get above 25 and stay there. If we close above 25, we may see some premium hikes. Any opinions on today's CLCX trade?

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