SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?

To: Bridge Player who wrote (4648)12/8/2006 1:08:49 AM
From: Hepps  Read Replies (3) | Respond to of 5205
 
Bridge Player, I went for a covered strangle as well.

Sold QCOM APR 45 calls yesterday for 1.70 and APR 35 Puts for 1.40. As I did this against only a portion of my portfolio, I can not imagine an outcome that I'd be unhappy with. The Calls yield around 11% (annual) if the stock doesn't move, and 55% (annual) if I get called. The put side yields 9% annual. If I get the stock put to me, cost basis goes from 39, (current price) to 35.45 ((39 + (35 - 310 options))/2.

I haven't factored in interest, dividends or commissions; almost a wash between the three I think.



To: Bridge Player who wrote (4648)1/24/2007 10:39:01 PM
From: Bridge Player  Respond to of 5205
 
Was put SLB at 65, with a cost basis of 61.10 counting the short 70 call also sold which expired.

Thanks to excellent earnings and a rally in the stock along with the oils, now short the Feb. 65 covered call.


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News