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


To: Gary E who wrote (2909)11/6/2001 5:47:01 PM
From: DiB  Read Replies (1) | Respond to of 5205
 
Well, let me try.

Bot 200 CIEN @ 16.25..................(3250.00)
Sold 2 Nov 15 Calls.....................420.00

If I'm called, I get 15*200 = 3000. 3000+420 = 3420. Income: 3420-3250 = 170. Percentage: 170 / 3250 = 5.23%.

If I'm not called, my cost basis is 16.25-2.10=14.15

OK, I see where I miscalculated. For some reason for cost basis I was subtracting 2.10 from 15, and not from 16.25.

...and I thought I'm pretty good in math :o) ...

-DiB