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

To: Allen Furlan who wrote (3643)	4/11/2002 9:52:36 PM
From: JohnM	Respond to of 5205

Interesting post and interesting strategy, Allen. And one of these days I'll be able to talk intelligently with you about them. But, definitely, not yet. As for the price of Ntap when I bought the calls back, I don't have any memory. I bought them back on the 9th, so, if you wished, you could look up the price range for that day. John

To: Allen Furlan who wrote (3643)	4/12/2002 2:55:35 AM
From: Uncle Frank	Read Replies (3) \| Respond to of 5205

>> Many participants of the thread indicate an option buyback at lower price as a positive event. The stock price and option price should both be considered in order to determine long term profit. That's dependent on the intended holding period, Allen. Many of us write against very long term core holdings, and don't concern ourselves overly with short term price fluctuations. We regard cc's as a method of generating income without disturbing our positions, and measure the efficacy of our approach purely in terms of net retained premiums. As a result of repeat cc sales, some of our stocks have adjusted cost bases of zero or less. duf

To: Allen Furlan who wrote (3643)	4/12/2002 10:57:45 AM
From: BDR	Read Replies (3) \| Respond to of 5205

<<It would be interesting to know the strategies behind the positions posted on this thread.>> To get called out (just to take a different position from dUF) For example, today: bought GMST @ 10.15 sold QLFKU @ 4.20 (Nov 7.5 calls) If called out in 217 days, return is 25% Breakeven 5.98 (40% downside protection) Could someone with access to a probability calculator run the numbers on that for me? The probability calculator that McMillan's site provides won't run on my Mac, but I think the odds are good that I will get called. (Of course, I thought that would also be the case when I bought BEAS @16.70 and sold June 15 calls @ 5 last November)