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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: the options strategist who wrote (7589)	6/10/1998 3:09:00 PM
From: Douglas Webb	Read Replies (2) \| Respond to of 14162

However, I still do not understand the dollar figures you have... "Nov98 Call Buy 5 @ 10.0 Sell 10 @ 12.5 ($156.50) $3718.50 Outperforms Stock Ownership in price range: $10.81 - $14.69" This position quote says to buy the Nov98 $10 calls and sell the Nov98 $12.5 calls. It will cost $156.60 to open the position (before commissions) and the maximum gain is $3718.50. If the position could be opened for a credit, the credit wouldn't be in parens. The 'Outperforms' range means that the spread is better than just owning the stock so long as the stock closes between $10.81 and $14.69 on the expiration date in Nov98. Doug.