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Strategies & Market Trends : Covered Calls

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To: tchphysics who wrote (38)5/11/1998 6:18:00 PM
From: Bill J. Landis  Read Replies (2) of 86
 
Jeffrey A. MacQuarrie wrote on May 11 1998 5:19PM EST

Didn't pick up any extra calls...but the good news is that I am very safely in the money on the calls that I wrote (Jun 12.5) and can probably sleep knowing that I have comfortably captured my intended and relatively boring 25% return.

Sure, 50% would have been better....but 25% is sure better than a stick in the eye.


25% Boring!?!? If that's not annualized, then I think this bull has trampelled the brains clear out of your head!! ;). Congrats.

I'm not sure if I asked this here before or not, so forgive me if I have. But what do people think of writing Covered Calls in a Roth IRA? Is anyone here doing it? I'm seriously considering making CCs the cornerstone of my investment strategy (I'm just starting out here), and it seems like getting the premies and frequent capital gains tax free would be quite a big bonus!!

--Bill Landis
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