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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: Greg Higgins who wrote (10833)5/19/1999 3:12:00 PM
From: Greg Higgins  Respond to of 14162
 
I wrote:
On the other hand, it looks to me like the same 1 1/8 is available on the Oct 65-70 call spread for an annualized return of 112.50/387.50 * 12 / 5 * 100 = 69%. Hmmmmm.


But with the stock at 58 1/2 ish, the July 60-65 call credit spread potentially returns a not quite believable 143.75 / 356.25 * 12 / 2 * 100 = 242% annualized.