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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: Herm who wrote (7144)	3/22/1998 3:37:00 PM
From: Ali Husain	Read Replies (1) \| Respond to of 14162

Case Study SMOD: Hi Herm, please advise what you think of the following: I own 400 SMOD at $22.44 avg. My investment at margin minus comm and margin cost is $4538 approx. I am planning to write Apr22.5c at $2 1/4 or higher. (it is trading at 1 7/8 but I believe that the stock will move higher a bit next week and I will get at least 2 1/4 or higher for it). My return will be about 20% if I get called out or not. I am not concerned about getting called. I still have the trader mind and I prefer not to be married to any stock. Do you see any problem with my strategy? Can you find a better call for Apr in SMOD to write? I am looking for 15% or higher returns in CC writing, is this realistic? Ali Husain