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: Herm who wrote (7673)	6/17/1998 8:26:00 PM
From: Bill/WA	Read Replies (2) of 14162

Herm, Been following your thread for quite awhile. Would you comment on this example? Own 200 shrs BAY bought @ 27.50 on Jan '98 Sell 2 BAY Sept 32.50 CC @ $2 (quote on Jun 16) Pocket $400, disreguarding commissions If stock is called: 32.50 x 200 = 6500 2.00 x 200 = 400 ____ 6900 27.50 x 200= -5500 ____ 1400 return on a 5500 investment (a 25% return in 9 months. Purpose: would be satisfied if called @ 32.50 plus the extra $2/shr. Downside:1.If stock rises above 34.50, I loose out on the resulting appreciation. 2.If stock tanks to low 20's, I have to hold till Sept. expiration to do something. Upside: I'm satisfied with the 25% return in 9 months. Would you be kind enough to comment? Thanks again for sharing, Bill

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next