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

To: TShirtPrinter who wrote (3910)8/4/2002 10:56:21 AM
From: Andrew N. Cothran  Read Replies (1) | Respond to of 5205
 
Here's a trading idea:

Buy ZLUAF (January 2005 $30 call) for $9.00
Sell AAWAF (January 2003 $30 call) for $3.00
Net debit is $6.00

Then, continue to roll the near term sell (avoiding getting called) until your net ZLUAF purchase is $0.00.
Then you can ride QCOM for free until January 2005.

In fact, if you continue to roll the near term sell, you will probably wind up taking in more than the $9 purchase price of your ZLUAF.

It's like having your own ATM machine, right?

The only problem with this strategy is for QCOM to continue to decline, making your ZLUAF call worthless.

But is that likely to happen? I can't see it in my periscope.



To: TShirtPrinter who wrote (3910)8/9/2002 2:36:18 PM
From: Uncle Frank  Read Replies (1) | Respond to of 5205
 
Hey, Tony, you're making me blush. It was I who was lucky to meet you. Not only did you pick up the check, but I got a couple of neat hats out of it :-).

Nice few days, huh? Feels good, but somehow I get the feeling the bear isn't about to roll over. Just covered my cisco position with september12.5 @ 1.50.


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