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: Joe Waynick who wrote (7657)	6/16/1998 10:18:00 PM
From: Tom K.	Read Replies (1) of 14162

<<The way I see it, my total risk is the call premimum. If the stk is anywhere below $9 by expiration day, I make a profit.>> Joe, why not just buy a $10 PUT for the $1 premium and don't bother with the stock. Using your scenario... 1. stock is flat... lose premium (same result) 2. stock goes up to $15... lose premium (same result) 3. stock goes down to $5, PUT goes up to $5 and your $1 investment has gone 5 fold, i.e. 500% in 60 days. A cheap (and simple) alternative to consider. Tom

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next