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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: FruJu who wrote (7368)	4/28/1998 8:49:00 PM
From: Herm	Respond to of 14162

Hummm, how about your net cost when you think of it is $12.50 stock - 1.75 premie =$10.75 net adjusted. Afterall, you have more dollars in your account and $1.75 worth of downside protection on your original $12.50. If you were to cover you would need to generate more than the cost to cover and the price decrease on the stock. So, going out one or two months and down one strike price would more than protect your downside and lower your net cost basis even further. Perhaps, down to $8.00. Just a thought! I can tell you have the CCing feel!