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

To: Kayaker who wrote (2677)	10/14/2001 9:11:15 AM
From: AnnaInVA	Read Replies (1) \| Respond to of 5205

Thanks, Kayaker. This reasoning makes a lot of sense: >>If I buy shares and short calls and the stock runs up and I want out, I have to buy the calls back at a loss. I know they would go up less than the stock but still not a good situation.<< As far as the return % is concerned, I would be in the other camp as well, grin .... I would look at the $27 premium as a 38% return because the $70 share I had to buy, I only paid $43 or 62% of the actual cost. Still a huge 154% return annualized. And, since the margin requirement for writing the naked put is really not that significant, this is definitely the best way to go. Great ! :) Thank you, anna