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


To: Kirk © who wrote (22112)7/26/2011 12:32:08 PM
From: GROUND ZERO™  Read Replies (1) | Respond to of 220484
 
Now the $20 call 1 month out is $1.35. Is it worth tying up my capital for that?

If you're happy with a 6.75% gain in only one month, then you ought to be very happy... for a $100K investment, you're taking in $6750.00 a month without sweat, where else are you going to get that kind of return guaranteed? I said GUARANTEED...

Also, realize it's not an all or none strategy, there's nothing wrong with several covered calls and also some net long positions... I do that with AGQ, I have some covered at the money calls that expire next month, I have some waaaaaaaaaaay out of the money calls that expire January 2013 but pay a fortune in premiums, and I also have some net long positions... why not do all of it, diversification...

GZ