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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: Johndee who wrote (9453)	1/14/1999 7:36:00 PM
From: VincentTH	Read Replies (2) \| Respond to of 14162

Johndee, You have 2 options: 1. Buy them back in the morning, the trend is still down, especially tomorrow is option expiration day. You may make some $$ this way. If this is in an IRA account, this is the only option you have. 2. DXGBV still has $1.55 time premium left in the call (7.35+2.2-8.0), so if you want to squeeze the call premium without a lot of risk, set a tight limit order GTC for 140 shares of FLC, say at 8 1/2 to limit your loss if the stock runs away. Then if the stock goes up, you are covered. If the stock goes down further, either buy back the calls (option 1), or buy the 140 shares at lower cost, then buy back the call near expiration. Note that you cannot use option 2 if you are in an IRA, or there will be some stiff penalty, or so I was told.