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 : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Herm who wrote (5961)	11/24/1997 12:13:00 PM
From: hpeace	Read Replies (2) \| Respond to of 14162

herm and thread.. another great site... ultra.zacks.com

To: Herm who wrote (5961)	11/24/1997 12:24:00 PM
From: Patrice Gigahurtz	Read Replies (1) \| Respond to of 14162

Herm: After being told my stock wasn't called away from me I just got a call from my broker who informed me that I was in fact called away at $10 ! I'm stunned to say the least. Why does it take until midday monday to determine if a call contract is excercised when the said contract expired 11/22 saturday ? Yes its true, I could have bought back those CCs at 1/16th the asking price late in the day friday....but I didn't 'cause I'm frugal. Maybe I'm lucky I was called as the underlying stock is drifting lower due to asia woes ? Anyway, the answer to my question is yes one can be called if the strike price ends at the close at exactly the strike price. I'm just confused why it takes so long to determine if the contract was excersied. Thanks for every ones input. Herm, I'm tempted to buy back those naked Feb puts I sold, take a big lose, and go right ahead and sell naked puts in the same security at another strike price (ie, May '98).

To: Herm who wrote (5961)	11/24/1997 1:11:00 PM
From: Roger Louis	Read Replies (1) \| Respond to of 14162

Herm & All.... This question was asked in Blue Print, a publication from the Option Industry Council. " I wrote a covered call option this year, but the expiration date is next year. In what year is the money received reportable, this year or next year?......... The Answer, " Under most circumstances, the premium received in writing the call is not reportable at the time of receipt, but rather when either the writer closes out the position, the option expires worthless or stock is delivered as an assignment notice. If, for example, the writer closed out the option this year, the premium would be reportable this year; if the option were held until next year, the premium would be reportable next year." This is my first year writing options so I found this very interesting. But with all the new tax laws, better check first!

To: Herm who wrote (5961)	11/24/1997 1:13:00 PM
From: hpeace	Read Replies (1) \| Respond to of 14162

herm and thread, weird strategies that have been working... especially the naked put repair on asnd. just switch to another stk $ for $.. and it's been rockin' strategies that work on any stk that retreats YOu will have to bide time on asnd til they announce earnings. here's how to put money in your pocket.. sell covered calls on either calls you own.. even if you own a march 30 call.. you can sell a dec 25 call when it rallies to 25+.. you can also sell covered calls if you own stk and sell dec 25 calls on a naked put you may have sold. another strategy on a naked put repair is / buy the naked put back on asnd and sell the naked put on another stk like cpq or dell or klic or smod... but, wait til tuesday on dell or cpq move. good luck