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: Talib who wrote (6490)	1/18/1998 6:57:00 PM
From: Herm	Respond to of 14162

Howdy Talib, Review your status: ROST Nut @ $38.5 and current stock price is at $36.75 or -$1.75/share down. 1. Zero volume means that no transctions have been made for THAT DAY! However, the open interest for that option will tell you how many contracts are outstanding (pending). As I write, the Feb. 10 had a volume of 10 for Friday. 2. The last price of 8 1/2 was paid when ROST was at the higher price and no new closing price has been made since the last! Note, I notice that when the market makers close out their transactions are counted in the volume but not the last price. 3. The number one rule is to NEVER ALLOW the stock price to drop below your net cost basis. In this case, $38.50. You did not mention how many shares you own! I hope it is more than 300-400! Otherwise, the CC commission % will eat away most of your CC premie! 4. The Feb. 35 @ 3. If you sold CCs the math would be $38.50 nut - $35 strike price = $3.5 - 3 CC premie = - 1/2 loss IF YOU ARE CALLED OUT! If you are not, then your new adjusted net cost is reduced by $3 to $35.50. Then you can turn around and write another round of CCs. Doug's chart indicates ROST is in an upward cycle at this point! Typically, ROST starts to climb towards that $42 level. Same store sales continue to increase. webbindustries.com