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

To: PoetTrader who wrote (2556)	10/3/2001 3:53:59 PM
From: Brian Sullivan	Read Replies (1) \| Respond to of 5205

I think that by waiting until the options is 5-6 points in the money to roll up and out you have waited too long. Today I rolled out and up in MSFT options as follows: Buy to Cover -MSQJK Oct 55 for 2.95 Sold Covered Call -MSQKL Nov 60 for 1.95 So I paid 1 buck to roll up and out and potentially capture 5 dollars worth of appreciation. Normally to repair a position I move up one strike and out one month.

To: PoetTrader who wrote (2556)	10/3/2001 4:08:07 PM
From: Uncle Frank	Read Replies (2) \| Respond to of 5205

>> I got put Msft at 50 but made 55c so cost basis is 49.5 Sold Nov 50's for 5.60 yesterday...as you can see the market has ran away from me... I don't understand your problem. If msft gets called at 50, you've realized a profit of (50+5.60)/(50-.55)=12.4% Why not let it get called, and then, if you want to maintain a position, wait for a reasonable re-entry point? It only would have been a problem if msft had dropped to 40, or if being called triggered a big tax bill. uf