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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: Greg Higgins who wrote (6496)	1/18/1998 8:07:00 PM
From: Greg Higgins	Respond to of 14162

Higgins on Hedges, How to Identify and Trade Options with No Principle Risk and 40% ROI Just to show that I'm not too crazy, let me show you a much less than perfect hedge. These are real bid ask prices from the CBOT: Buy ORCL Mar 15 call, $5 Buy ORCL Mar 30 Put, $10 3/4 Sell ORCL Feb 20 Call $1 Sell ORCL Feb 20 Put $1 3/8 Total Investment 15 3/4. Assuming nothing major happens it's hard not to make $2 off of these trades for the two month the options are in existence. I'll take that as a minimum, and claim a 76% ROI. This one is too risky for me, however.