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

To: Bridge Player who wrote (4763)	3/4/2007 12:38:00 PM
From: Road Walker	Read Replies (1) \| Respond to of 5205

I don't know if buy/write for leaps has been discussed a lot on this thread. What if you did a buy/write on AMGN '09 60's. They are trading at ~$12. You get about a 19.5% return in about 22 months. Your cost basis is $49.75 per share in case the stock declines. Or say you did GE buy/write. Selling about $35 and the '09 calls are ~$4. They pay a 3%+ dividend. You get an immediate 11.5% (that you can re-invest). Plus $2.24 in dividend payments over the life of the buy/write. Just thinking out loud.