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

To: DiB who wrote (2904)	11/6/2001 5:28:54 PM
From: Gary E	Read Replies (1) \| Respond to of 5205

DiB, I read this thread trying to learn, so could you help me out here? You said you Bot CIEN at 16.25 and sold Nov 15 Calls on 2/3 Let's say for example and forgeting commish Bot 300 CIEN @ 16.25..................(4875.00) Sold 2 Nov 15 Calls.....................420.00 cost so far...........................(4455.00) IF STOCK is above 15 You will be called out of 200 sh.......3000.00 And are now holding 100 sh at.........(1455.00) IF STOCK is under 15 You are now holding 300 sh at a cost of 4455.00 Or a pershare basis of 14.85 How do you figger the 5%+ income? How did you arrive at the below 13 cost? and if comishions are added into this then what? Hal