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Strategies & Market Trends : Options 201: Beyond Obi-Wan-Kenobe -- Ignore unavailable to you. Want to Upgrade?

To: RWS who wrote (1043)	8/6/2004 10:37:54 PM
From: Dominick	Respond to of 1064

I'm kind of confused here. You said you want to hold the stock. So why did you sell a deep ITM call and holding to expiry guaranteeing the stock will be called away from you? dom

To: RWS who wrote (1043)	8/6/2004 10:50:30 PM
From: alanrs	Read Replies (1) \| Respond to of 1064

Should I have sold out of the money calls instead? Goodness gracious, yes. If you want to hold the stock, selling a $25 strike when the price is $29 is not the way to do that. Or if you do buy at 29.28 and sell the 25 strike, you had better be getting a whole lot more than 4.10 premium if you expect to make money. Subject 51101 Go to this site and start with post #1 and read until it makes sense and is boring. Get one of McMillans' books on options. I've tried to say a few other things and find myself stymied-a combination of not knowing where to begin and not being a very good typist. Options are as simple or as complicated as you wish to make them. The simple strategies are not hard to learn, and you defined as your goal a simple strategy. Read about covered calls before you give it another shot. ARS