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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 (6574)	1/26/1998 11:22:00 PM
From: HF	Read Replies (1) \| Respond to of 14162

Greg, Thanks for your example. I worked it out both ways with the stock ending at 105 to 125. I used these premiums. Sell Feb 115 Call = 4 Buy Feb 120 Call = 2 Sell Feb 115 Put = 4.5 Buy Feb 110 Put = 2.5 I started the stock at 115 just to make the numbers a little easier. Using the Butterfly spread. Stock ends at: Gain/Loss 105 -1 110 -3.5 115 +4 120 +1 125 -1 Sell Feb 115 Put, Buy Feb 110 Put. Stock ends at: Gain/Loss 105 -3.5 110 -3 115 +2 120 +2 125 +2 What are your thoughts assuming my calculations are correct. I can't see an advantage either way except maybe less commissions.