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

To: Hunt who wrote (6335)	1/8/1998 10:29:00 AM
From: Hunt	Respond to of 14162

Screwed up the calculation on previous post it is a 14% return for the 5 weeks, though 29% if you are on margin. Sorry

To: Hunt who wrote (6335)	1/8/1998 11:08:00 AM
From: Tony D.	Read Replies (1) \| Respond to of 14162

Hunt, Last month I bought MDCO for 20 1/4, sold the Jan 22 1/2 calls for 1 1/2, and coverd yesterday for 1/16. 6.66% profit less commissions. I thought that was pretty good until I looked at CREAF last night. I just placed an order for CREAF at 17 1/2. It has already gone up to 17 3/4. I adjusted my bid. I plan on selling the Feb. calls. If I get 2 1/2, that gives me a return of 14 1/4% (less commissions). If I wait for an up market day, I could get up to 3 for the calls. Do I wait or pull the triger now? Tony D.

To: Hunt who wrote (6335)	1/8/1998 2:28:00 PM
From: Greg Higgins	Read Replies (1) \| Respond to of 14162

Hunt writes: Creaf has been hit down hard on no news that I can find. Currently, at 17.5, the Feb 17.5's are at 2 1/4. That's 29% return for 5 weeks if CREAF can head back up. Wish I had some buying power to take advantage of this. Convinced me! I looked it over and I think you're right. I did a buy-write for a net debit of 15 1/8 (15 5/16 ish including round trip commissions) [bought stock at 17 3/4, sold call at 2 5/8]. If it gets called it's 17.5 + 2.625 / 17.95 for 14% after commissions. If I can buy back for < 1/2 it's 11% after commissions. As long as it stays above 15, I should be able to write a future call large enough to come out ahead. While looking things over, I noted that Hunt's post was net 15 1/4, I saw net 15 3/16 easy and I asked my broker to get me net 15 1/8. I think it may be possible to get net 15 1/16.