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

To: Hepps who wrote (4559)	11/15/2006 12:08:45 PM
From: Bridge Player	Read Replies (2) \| Respond to of 5205

The reasoning looks sound to me and the possible percentage gains are attractive on a stock like QCOM. Surprised that your broker will let you sell short puts in a Roth account. Even if cash-covered. Care to share the name of the broker for others who might be interested in strategies like this? Edit: Sorry for the wait to respond, I was off for a few days doing other stuff. And of course I realize these values you mentioned change minute to minute.

To: Hepps who wrote (4559)	11/15/2006 12:50:32 PM
From: Uncle Frank	Read Replies (1) \| Respond to of 5205

What to do? I'm short the November ntap 37.50 put, which expires on Friday. The stock is trading above the strike price, and in a "normal month", there's a good chance the options would expire worthless. At worst, I'll have the stock put to me at a cost of 37.50 minus the premium of 1.50. But ntap announces tonight, and imho they are priced for perfection. It pains me to pay .95 for an out-of-the-money option with only 2 days left on it, but I think it would be prudent to close the position now :-(. duf