How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: jw who wrote (9606)	2/7/1999 10:12:00 AM
From: Herm	Read Replies (2) of 14162

I don't think you need protective PUTs with S at this point! You could sell CCs for S 45s Jul @ 3. Then you can turnaround and buy more shares to get more even lots of shares. If you get called out in July at $45 ($45-40.25=$4.75 +11.8%)+ $3.00 (+7.45%)CCs =$7.75 (+19.25%) you have a handsome gain from the stock and CC premies. Plus, there is a $.23 (+.57%)dividend on Feb. 24, 1999. You might as well use the CC premies to grab the div. payment. The first overhead resistance is at the $45-$46 range. So, you might as well make some money while you wait. Buying more shares with the CC premies makes it possible for you to leverage using your call buyer's $$$$. Like I said, S is a conservative play good for 45% to 55% gain for this year if you CC, collect divs, and do sideshows! iqc.com

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