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

To: Hepps who wrote (4698)	1/14/2007 12:47:08 PM
From: Uncle Frank	Read Replies (2) \| Respond to of 5205

>> 11% annualized if I don't get called and 30%+ if I do is OK by me. Help me understand your analysis. If you don't get called, it means the stock is trading below the strike price at expiry. It may be below your purchase price, so how can you assume you'll enjoy a positive return, much less precisely 11%? duf

To: Hepps who wrote (4698)	1/22/2007 3:15:26 PM
From: Hepps	Read Replies (1) \| Respond to of 5205

Found myself sitting on the fence this weekend. last wee I posted: Just did a buy-write on Friday. EMC bought at 14.28 Sold the APR 15 for .45 EMC is down to 13.60 since then. Considered buying back my calls for .20 and selling the APR 14 calls for .65. This would have locked in a return of just over 4% (assuming no more sliding on the part of my stock), annualized to 16+. It would have taken my breakeven point down to 13.40. In the end I held to my guns... or froze like a deer in the headlights. I thought that this was supposed to be an easy way to pick up some free cash. Hepps@pickingupfreecashinfrontofthelocomotive