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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: Dnorman who wrote (8638)9/20/1998 10:36:00 AM
From: Herm  Read Replies (2) | Respond to of 14162
 
Dennis,

I would suggest for your suggestion #1 selling the JAN. 7.5s @ 1 1/4 = $1,250 makes the nut $6.25. $1,250 can buy loads of ss PUTs. The APR 5s @ 1/2. 20 PUTs @ 1/2 = $1,000. If the PUT doubles to 1 you now have $2,000 or an additional $1,000 and you net cost would be $5.25.

1. Buy 1000 @7.25 = $7250.00 sell 10 Oct 7.5 calls @ 7/16 = $450.00 makes nut $6.70 even with selling ss put premies my nut would be $6.45 with the stock worth $5.00!