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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: Caroline who wrote (9356)1/6/1999 9:50:00 AM
From: Mario  Read Replies (1) | Respond to of 14162
 
Caroline,

I always ask myself, do I want to own this stock in September with
a cost basis of 1.8755 even if theoretically the stock might be trading for 1.00 at that time.

A 70% return is the upside if you are called out. It ties your money up for a good 8 months but not a bad return.

Mario



To: Caroline who wrote (9356)1/6/1999 7:18:00 PM
From: EepOpp  Read Replies (1) | Respond to of 14162
 
hi Caroline,

if it'll help you out any, in a sense, you would've shorted a put. Shorting a put will give you the same kind of action and return as going long a stock and shorting a call. If you can say yes to wanting to short a put on SMTK, then you should implement the strategy.

also, if you decide to short the put instead, you will only generate one set of commissions.

good luck!

Will