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Strategies & Market Trends : You buy a stock. It goes down, now what?
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To: Bald Eagle who wrote (36)7/9/1998 10:49:00 AM
From: Bald Eagle  Read Replies (2) of 112
 
Update on personal case study on ADPT using covered calls to reduce loss:

DATE ACTION BASIS PRICE

2/13/98 Bought ADPT at 23 1/8 23 1/8
2/13/98 Sold Mar 25 calls at 1 3/16 21 15/16
3/23/98 Sold APR 22.5 calls at 1 1/8 20 13/16
3/27/98 Bought APR 22.5 calls at 9/16 21 3/8
3/27/98 Sold APR 20 calls at 1 7/16 19 15/16
4/7/98 Bought APR 20 calls at 3/8 19 3/16
5/1/98 Bought MAY 22.5 calls at 7/16 19 5/8
5/1/98 Bought 1/3 more ADPT 21 1/8 20
5/4/98 Sold JUN 20 calls at 1 5/8 18 3/8
5/14/98 Bought JUN 20 calls at 7/16 18 13/16
6/25/98 Sold JUL 15 calls at 2 16 13/16
7/9/98 Bought JUL 15 calls at 5/16 17 1/8

So ( ignoring commissions ), my basis now for ADPT is 17 1/8
versus the 23 1/8 and 21 1/8 that I actually paid for the stock.
I decided to buy back my JUL 15 calls in case of a surge next week.
The options point of maximum looks to be 17 1/2 or 20.
I'll sell some more calls after next week.
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