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

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To: David Wright who wrote (10656)5/8/1999 3:50:00 PM
From: tuck  Read Replies (1) of 14162
 
Dave,

I tried this idea for the daily and hourly Edify charts. Looking at them, I figure it's got a couple more days of upside.

iqc.com

iqc.com

So I could roll to the May 12.5s when the stock is at say, 13 (shouldn't be much time premium left in my 10s in that scenario). That way I have a fair amount of protection to begin the ride down. I would then hope for the pullback to below 12.5 by the 21st, allowing me to keep that premie, and on the 24th write June 10's.

If it pulls back right away, I guess I'll just have to live with the 13% return I already got in four weeks :~} (less if it goes all the way under 10). Maybe I'll get to roll out to the June 10s a little earlier, in that case.

This, guys and gals, is what I'm talking about! Comments?

Cheers, Tuck
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