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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 (10559)4/27/1999 2:46:00 PM
From: tuck  Read Replies (4) | Respond to of 14162
 
Herm and thread,

Check out EDFY. I'm in this to the hilt, because the risk reward ratios are so good. As I write the stock is 10 1/2. The May 7.5 and 10s are at 3 5/8 and 2 3/8, respectively. I'm in the 7.5 s(bought the stock at 8 5/16). We're looking at 18.5% time premium for the 10s with 22% downside protection, and 6% time premium for the 7.5s with a whopping 35% downside protection. Two and a half weeks from expiration! Since I bought earlier, my position is a little different, but the current one is plenty attractive.

Curious to see what the thread thinks of this one. Do your DD and your TA, run the numbers and tell me what y'all think.

Cheers, Tuck