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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: Shell R. Poust who wrote (10305)4/10/1999 8:32:00 PM
From: Mark Z  Respond to of 14162
 
The 5% was in reference to rolling the April 210's to May 220's. As the transaction itself will net you nothing (both options are priced at about $56), you'll make an extra $10 going forward due to the increased strike price. Since the current value of the position is $210, that'd be 10/210 or about 5%. Which translates to an 80%+ return (compounded) per annum. Hardly a return to scoff at!!