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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (43607)	3/3/2009 1:56:47 PM
From: Nancy	Read Replies (1) \| Respond to of 95587

I thought about your XLF covered call 9 at 1.4 and put 8 at 0.20 when it was 8.49 - I decided to take a look of it in 2 to 3 days.. As of today, XLF at around 7, the 9 call sold can be bought back at 0.09 or 0.10. The 8 put bought can be sold at 1.37. So you would actually make a nice buck+ as the call prem covered the stock declined from 8.49 to 7, while the put becomes hugely profitable - being more so because the put has higher premium (not just the in the money intrinsic value) then the call, vs when XLF was flying the call has higher premium. The least profitable scenario would be it does not move - never happens in this kind of market - but you still would have made 0.50. This is something I have never thought about and need to explore the potential.