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

To: rrufff who wrote (4349)	3/12/2006 9:02:05 AM
From: Jerome	Read Replies (1) \| Respond to of 5205

rrufff.... some ideas on XOM The stock closed at 59.18 The April 60's are worth 1.25 to 1.35 The April 62 1/2's are worth .60 (more if XOM rallies on Monday AM) If you wrote the April 62 1/2's for .60 or better and then the stock rallied by the third week in April you would have two choices. 1) accept the call out and pay capital gains on the gain(this could be an interesting variable) 2) buy the option back at a higher price and have a short term loss on it. I prefer being called out because it gives me a chance to either buy it back at a lower price or to re-evalute my holdings for the next month. This months best idea may not be next months best idea.:) Jerome