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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Uncle Frank who wrote (13592)	2/5/2001 3:47:41 PM
From: Victoria Walley	Read Replies (2) \| Respond to of 14162

Given my scenario, if my basis were $140 and I had sold the $90 call (which I probably wouldn't do in the first place), I might be more inclined to roll up and out or even to take a loss on closing the call if I thought the stock was heading back up and I didn't want to get called out at expiration at a certain loss. I'd say you've got a pretty desirable dilemma there, uf! You've put yourself into a win-win situation regardless of the outcome.

To: Uncle Frank who wrote (13592)	2/5/2001 11:20:31 PM
From: JGoren	Read Replies (1) \| Respond to of 14162

Theoretically, one is not supposed to look at tax consequences, but qcom calls being exercised when it triggers a huge capital gain tax is not exactly what I would want. Nevertheless, I think the Feb 90's are probably going to expire worthless unless there were some major news in the next week. I feel safe having sold Feb 100's; I couldn't accept the capital gain. The bigger question is what to do going forward. I think qcom could make another runup if China contracts let or it becomes obvious to the market that NOK is folding even at the high PE. The TA makes perfect sense but can't predict news, and that of course is the risk for writers of calls who don't want exercise. (BTW, my basis is a lot lower than Uncle Frank's.)