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

To: Jerome who wrote (4722)	2/13/2007 1:56:13 PM
From: Uncle Frank	Read Replies (1) \| Respond to of 5205

>> XLNX at 24.90 looks like a good option for March. The 25's (-xlqce) have a current value of .80/.85 The stock will probably be called out at the 25 strike in March. When XLNX trades above 25 (like today) the option should fetch .95/1.00. Are you suggesting this as a buy-write play? If so, I'd think the risk would be ending up with xlnx as a permanent holding. Twenty five is the the upper end of it's trading range. In the 29 trading days of 2007, it's only closed above 25 twice, on Wednesday and Thursday of last week. I think the play is an excellent one if xnlx is already a core holding, and a good one if you're optimistic about xnlx and want to add it as a core holding. But as a buy-write, I think it's questionable. Jmho and wtfdik? duf