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

To: Mathemagician who wrote (4807)	3/11/2007 8:57:35 AM
From: Jerome	Respond to of 5205

>>>Unless your positions are right <<< Well said...now give us some right positions for the balance of the week. Where do want to hang out this week if you have some fresh cash in your account? Is it SNDK (recovery in flash), HAL (recovery in energy), GM (recovery in auto's), QCOM, (recovery in telecom), or WFC (recovery in mortgages) or is it ??????(suggestions) All of the above are solid CC plays trading just under nearby strikes for April expiration. Toss in your two cents. Covered call knowledge is very finite, (like buttermilk) having a shelf life of 3 to 6 weeks. We need some new ideas....so jump right in. JMO...Jerome

To: Mathemagician who wrote (4807)	3/11/2007 1:06:48 PM
From: Sonki	Respond to of 5205

Since you are the magician tell me what is wrong w. this logic? making safe bond money in a bull market 8% making safe bond money in a bear marekt 5% turning off your for 2 yrs is priceless.... this serves as a replacment to bond income (safer then bonds) buying leaps and and putting rest (stock - opt cost) of the money in cd gives me down side risk of 5% upside profit of 8% while I travel the world and 7 seas. doing cover call max downside is 3% and max upside is 7%. doing nothing gives me upside 6.25% in cd and zero downside. ============================= This example looks at 1.75 yrs jan 09 QQQ leaps and above % are then annualized. it's obvious to me, one shd by leaps not do cc. proposed initial invesment March 11, 07 43000 to investment(1k qqqq) 6160 1.75 yr call 43 jan09 36840 left over cash goes to cd invesment 2303 annual cd income 6.25 4029 1.75 yr cd income at 6.25 9% total income if my leaps goes to zero 5% annual income down side risk when leaps goto zero upside 51.6 qqq moves 20% in 1.75 yrs. (11% yr) 8.6 itm opt price assumeing I lost all prem 2000 qqq income on 6160 investment 32% qqq income over 1.75 yr 6029 cd income(on 36840) + qqq income in 1.75 yr 14% on 430000 over 1.75 yrs 8% annual bottom line 49029 by jan09 if goldilock rules and kudlow still has a job! 47029 by jan 09 if we are in a bearmarket and qqq is bak to 22 and kudlow will still claim that he is married to gold-i-lock.