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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: blankmind who wrote (7140)	3/22/1998 3:17:00 PM
From: Ali Husain	Respond to of 14162

Case Study: Let me try to explain. Others reading my post please correct me if I am wrong. I bought JBIL before earnings last week at $41 1/2 and MAR45C for a $1. The stock took a major dip on earnings (due to the forward looking statement) to $32.5 and recovered back to $34 - $35 range. My call became all profit at the end of last week. Now I own the stock at $40.5 I am considering to write a Jun40c at $3 3/4 next week. If I get called out I make $975 (16% in three months).This is not a great return but a damage control or a repair as they call it. If I don't get called out my cost basis goes down to $36 3/4. If the stock remains around $35 I can be back in action on this trade. Ali Husain