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


To: Jerome who wrote (4852)3/14/2007 12:25:14 AM
From: MJ  Read Replies (1) | Respond to of 5205
 
Jerome, please help this dummie----

You wrote---

"My general rule is to buy an option back only if the repurchase price is 1/4 th or less than the premium originally received."

Would this be what you mean------

Call written for $200.00 total premium

Buy back at $150.00

and

Buy back for less than $200.00

Do you consider the premium received as the amount received after the commission? Or do you include the commission as part of the premium.



Thanks

mj