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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: Paxb2u who wrote (22057)	7/25/2011 8:07:45 PM
From: Roads End	1 Recommendation Read Replies (1) \| Respond to of 220480

Very true. The inverse is true when the underlying goes up. Your stock gets called away and it takes more capital to buy it back. I figured the return only to be 3.6% given Message 27517640 isn't that about right?

To: Paxb2u who wrote (22057)	7/25/2011 10:16:14 PM
From: GROUND ZERO™	Read Replies (1) \| Respond to of 220480

i suppose under extreme conditions, but those conditions don't happen in real life, no stock that I've held has gone from 1000 down to 100, or from 100 down to 10, that's just silly... but more importantly, if the market declines enough to reduce the call down to next to nothing, I could just cover and re-enter an new covered call position... frankly, in nearly 40 years of trading, I've never run into anything even close to what you describe... you can imagine it happening, but it has never happened in real life... GZ