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

To: Uncle Frank who wrote (4993)	6/1/2009 7:56:41 PM
From: CrackheadBob	Read Replies (2) \| Respond to of 5205

I am as upside down in my covered calls position as I have ever been and still trying to unwind. Here is what I have done so far: Sold the April 37.5 for $1.50 Bought the April 37.5 on exp day for $3.75 Sold the May 40.0 for $2.60 Bought the May 40.0 on exp day for $0.75 Sold the June 41 for $1.55 These are still open and I plan to hold until the day of expiration and roll into some July calls. At some point I hope to unwind this completely and start over. On the plus side, this shows how even with the stock price going up, you can gradually increase your break even point with covered calls. I am very conservative with how much of my position that I play with like this so I am not worried if I do eventually get called out but I would prefer to keep the stock. The bad thing with being caught like this is that it limits my ability to generate monthly cash from my position with covered calls unless I want to expose a larger portion of my position. When I opened this position in April, the stock was trading at $37 ish.