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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: Herm who wrote (9541)	1/30/1999 3:42:00 PM
From: Casaubon	Read Replies (1) \| Respond to of 14162

OH! Now the wheels are starting to turn. OK, it looks like I'll have to sell the march 7 1/2's @ 5 1/4 bid. Given a net cost basis of 15 5/16 (excluding commiss costs), I'll be locking in my max loss @ 2 3/16 per covered call. If the stock is below 12 3/4 by the end of march 19th, I may get called out, but I'll suffer a smaller loss than if I just sold the stock I currently own. Also, if the stock drops to around ten, I can buy back the calls (cheaper) using my call buyers premium! Is that the game?