Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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

To: LindyBill who wrote (1654)	7/28/2001 9:42:23 PM
From: William	Read Replies (1) \| Respond to of 5205

Bill - What is your plan of action? It is one thing to say you are going to write in the money calls, but exactly what do you expect to happen? Since you say you are a virgin dummy, I'm thinking you may be new to this option stuff, and we would hate to see you get messed up in the unexpected. So feel free to check out things here before jumping in. With Q at $63+, an ITM would be the Aug 60 for example. It is going for $5.40. If you sell it and the stock is under $60 you get to keep the premium. But what do you do if the stock is 66, 70, or 75? Have you thought out what you will do under various circumstances? Or the SUNW - stock is $16.39, so ITM is 15's @ $1.70. Do you want the stock called? Do you want to avoid a call?What if the stock goes to 20 or to 10. Do you sit still or close out. If close, when? I just want to know that you have thought these things through. William