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


To: Hepps who wrote (4649)12/8/2006 9:09:26 AM
From: Bridge Player  Respond to of 5205
 
I have to admit that owning the stock would give a more comfortable feeling on the short calls. My SLB is naked both ways. Not really bearish on the stock, but trying to balance a little after a strong 5-month market run combined with the multiple on the stock.



To: Hepps who wrote (4649)12/8/2006 9:48:10 AM
From: alanballow  Read Replies (1) | Respond to of 5205
 
When you calculate annual yield, do you figure the number of days at risk or the number of times in a year you can repeat that strategy?

IF you get 1% for ten days at risk, do you use 360/10 = 35 times 1%? Or do you say "I can do this twelve times a year"?



To: Hepps who wrote (4649)12/27/2006 2:00:08 AM
From: Hepps  Read Replies (1) | Respond to of 5205
 
Bridge player,

Tried to close out my QCOM APR 45 Calls (sold on the 8th for 1.70) yesterday; price was at .75 for a while, but I wanted to see if I could catch .70 on a dip. No such luck. Nonetheless will try again today if I can find some weakness in Stock. I don't think that they'll go much lower; they tend to track the underlying less and less as they get further from it.

Happy Holidays