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Strategies & Market Trends : Covered Calls For Income Production -- Ignore unavailable to you. Want to Upgrade?

To: J.B.C. who wrote (10)

1/16/2015 11:37:31 AM

From: J.B.C.

Read Replies (2) | Respond to of 32

Trade for this test account and for real:

ISIS	Stock Cost	Option Cost	Days to expiration	Strike price	Month
400 Shares	68.29	10.5	182	70	July

Annualized called return	=(((strike price-stock cost)+option cost)/stock cost)*365/Days to expiration (%)

Annualized rate of return if called	35.9%


Static call return	=Option Cost/Stock Cost*365/Days to expiration (%)

Annualized rate of return if static	30.8%


Downside protection	=Option cost/Stock cost (%)

	15.4%