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Strategies & Market Trends : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?

To: cfoe who wrote (342)	5/1/2001 3:06:11 AM
From: Uncle Frank	Read Replies (3) \| Respond to of 5205

Congratulations on closing your May calls successfully. Double dipping is a real high for cc writers, but it's also a risky play. You first sold May 75s, and the recent high for qcom was 66.50 on 4/19. That means you chose a strike price that was at least 8.50 or 13% out of the money. Now, because the remaining time premiums are small, you are considering selling a May 60 with the underlying at 57.36, or only 5% out of the money. Your chances of getting called this time are much higher. But then again, you'll have collected $6.60 in premiums <gg>. duf