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

To: Uncle Frank who wrote (2304)	8/31/2001 10:17:54 AM
From: Mike Buckley	Read Replies (2) \| Respond to of 5205

Frank, qcom sept70 are trading at .40, so I am .23/sh. better off that if I had held them until today. That's a pretty small differential for lot of extra work. It's actually a $.27 difference, not $.23. Now that you realize your work has been so well rewarded, I give you permission to take the rest of the month off. :) --Mike Buckley

To: Uncle Frank who wrote (2304)	8/31/2001 11:59:44 AM
From: 100cfm	Read Replies (1) \| Respond to of 5205

Unc, thanks for the recap. But it's alot of extra work which way. The in/out or the hold till now part.? 100

To: Uncle Frank who wrote (2304)	9/9/2001 9:55:13 AM
From: Gary E	Read Replies (3) \| Respond to of 5205

Uncle Frank and Everyone, I am posting this to UF only because of the trade results shown here.. I NEED some help...... ------------------------------------------ 8/2: sold qcom sept70 for 4.30 8/16: bought qcom sept70 for 2.15 8/24: sold qcom oct70 for 4.00 8/30-31: bought qcom oct70 for average of 1.98 Proceeds: 4.17/sh. (disregarding commissions). ------------------------------------------- Now to my questions...and what I dont understand about the process..... On 8/2 QCom was worth $68 per share... Now it's worth $49....... While, according to the trades shown above a $4 profit was made but a LOSS on the stock amounted to $19....or maybe it's a rich uncles game and $4,000 profit was made on the calls....but that would mean that $19,000 was LOST on the principal...pardon me, but how is this a win? Or are you selling calls on stock you dont own?.. Thanks Hal