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

To: TShirtPrinter who wrote (3517)	3/15/2002 12:52:37 PM
From: Uncle Frank	Respond to of 5205

>> Gettings called isn't bad sometimes, but when you have to decide whether or not to let it happen... I will let 10 calls be taken since they were put to me last month on selling short puts. Made about $1 on the put and about $1 on the call. That sounds like a no-brainer. I'm presuming the shares were put to you at 40 and will be called at 40, so your net is the sum of the premiums you received for the short put and the short call, and there isn't a taxable event on the underlying stock to consider. >> The other 10 calls were sold @ $.85. Tried to pick up nickels in front of a train. That's been a popular sport around here since Andrew managed to do it 3 or 4 times in a single month <gg>. >> If I can close em for $.50 or less, it will be a mental victory. I don't think Mr. Market isn't going to let that happen, Tony. Just try to focus on the appreciation in the rest of your Q holdings. >> If I get called out, margin is almost gone... You still have margin? >> but so are those shares... You've got enough shares to choke a horse. You won't miss 1,000. >> Then some taxes. The only way to avoid them is to hang on to your shares until you die, but then you wouldn't have enjoyed them. Pay the taxes and buy a new toy :-). duf