Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Uncle Frank who wrote (4970)	5/19/2008 4:22:18 PM
From: alanrs	Respond to of 5205

I assumed you already had a barrel of cash sitting around due to QCOM, but didn't want to appear insensitive to your plight. >G< ARS

To: Uncle Frank who wrote (4970)	5/20/2008 12:47:21 PM
From: kelseysuncle	Read Replies (1) \| Respond to of 5205

You know, it's really OK. If I get called out it will be for a total price of 45 + 1.35 = 46.35, which will be a nice return. That's the beauty of writing covered calls against a profitable position. My QCOM May 45 covered call got called this weekend. I did make a nice return; 45 + .80 on shares I had bought for 40. This morning I sold June 45 puts for a buck covered by the cash from the getting called. Whatever the final result I'll be happy. I get better than 2% for just over a months capital commitment and I might get the stock back at the same cost. :-) dku