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Strategies & Market Trends : Covered Calls -- Ignore unavailable to you. Want to Upgrade?

To: Bazmataz who wrote (2)	5/3/1998 4:49:00 PM
From: tchphysics	Respond to of 86

At this point, the Oct 27.5's should be very good. I was eying July 25's for awhile but went with the June 25's because they offered a greater annualized return. I annualize the returns that I am looking at in order to accurately compare different expirations. In most cases the best returns are the near expiration calls. The current month (in this case May) tends to have too small of a premium to make it worth it, however. I still think GLM is a great stock to own and sell calls on. If I'm lucky, I'll get to keep my current shares, but it would not be a bit surprising to me to see this stock shoot up to 30 in the near term either. There are two ways to look at this. I could be upset about opportunity lost, but I think it is best to be happy that I got a nice decent return in a very short time. If this stock gets called out on me, I'll have made a 15% return in less that 50 days, which when annualized is about 106%. Certainly, not a return to complain about nor to look back at. Lets find some other similar stocks out there that can make some good returns for us. Jeff

To: Bazmataz who wrote (2)	5/3/1998 4:53:00 PM
From: tchphysics	Read Replies (4) \| Respond to of 86

I also should mention that I created a simple spreadsheet to help me track and analyze covered calls. I feed it the stock price, strike price and it calculates the commission for me, the return if called, return if not called, annualized returns, new cost basis of the stock, and downside protection (what percentage drop in the stock will allow me to still be above water). I'd be glad to share this with anyone that wants it, and would like to know if anyone has any other ideas for additions to such a spreadsheet to make it more useful. I use Quattro Pro, but I'm sure this can be imported into any other current spreadsheet as well. Just send your email address to me, if you'd like a copy, or alternatively, I can provide the formulas used to derive the above data. Jeff