To All: Option combination, potential big yield
While Dell is taking a rest the action is in internet issues. Mindspring is up like a rocket, numbers more realistic than other internets. [do an SI comparison chart.]
MSPG: 60 weeks +615%, beat YHOO. Price/sales ratio much better.
I did this yesterday:
Bot shares: 53 13/16, Now $59
Sold twice as many April 60puts @ $16
Sold same number Dec puts @ $6 1/2
[Also sold Nov 55, Dec 45 & 60 puts, all now profitable]
Converted to prices today: Buy 100 shares = $5,900
Sell 1 Dec 60P @ 7 = 700 premium paid to seller
Sell 2 Apr 60P @ 15 = 3,000 premium
Sell 1 Apr 60C @ 14 = 1,400 premium
Total premiums to collect = $5,100
Net cost if MSPG goes up $1 in 5 months = $8 share
Shares will be called in April @ $60 = $6,000. Yield, $5,200 = 650% gain.
Can wait and sell calls for more, or not sell them and keep the stock. [wiser]
Can roll out the puts for more premiums if MSPG drops.
Can sell more puts as MSPG goes up, make more premies.
FWIW
Don |
