SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Kevin who wrote (940)3/14/1997 2:12:00 PM
From: Greg Jung   of 14162
 
Kevin,

ASND should'nt get near 70 in the near future- before
that happens we will have DOW 12,000 and COMS at 150. :)
You are being bullish on the upside potential to bother with
covered calls, if you're thinking 70 strikes.

However the premiums are enormous on this stock. SO why think
small. If you write calls for strike $70 and it falls to $30
where was the profit? As the stock price declines your out-of-money
call price will decline very slowly.

If you think it will rally from today's drop ok hold 'til the
rally. Then sell CC to July, strike $40. maybe buy with that
(put 12+$ away for your principle) puts at strike $45. If they are cheap, buy 12 puts at 45 or 3 puts at 50. Call premium is probably too expensive to consider protecting against an upside move. Consider
buying the calls back if a bottom seems to occur.

This isn't a specific strategy just the kind of thing I'd recommend for ASND. The premiums are high enough you can play these games I think. Get a load of cash for sitting on the stock position
and use a small fraction to go contrary to the rallys. I think
ASND will meet or beat next month's earnings but there will always
be rumblings about the future. Any attempt to rally wil be met by selling on these, the funding isn't booming any longer.

Greg
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News