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: Herm who wrote (10273)	4/8/1999 9:53:00 PM
From: NateC	Read Replies (2) of 14162

Here's a strategic question for everyone. I own AOL as an underlying (who doesn't). It's done very well of late...and I've been busy doing my other gig....so what's happened is that I sold April 135 Calls. The stock closed today at 160...and I could buy them back for about 25 or so........ ...6 business days now to expiry. SO.......if I'm a little concerned that AOL is overextended.....which I am........do I: a. Let them go.....exercise at 135...no harm no foul b. Buy them back.....$25/share.....and then roll out & up.....selling the May CC's......whoops...as I'm writing this...I checked the preemies on the May, and answered my question...get this: The May AOL 160 (at it's current price) is going for 19!! The 170 finished today at 14 1/2 and the 180 at 10 7/8........No question what to do......might be nice tho to have a little dip tomorrow or Monday....and buy them for less than 25 any other thoughts?

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