From owner-freebsd-ports@FreeBSD.ORG Fri Feb 13 05:34:51 2004 Return-Path: Delivered-To: freebsd-ports@freebsd.org Received: from mx1.FreeBSD.org (mx1.freebsd.org [216.136.204.125]) by hub.freebsd.org (Postfix) with ESMTP id 8074216A4CE for ; Fri, 13 Feb 2004 05:34:51 -0800 (PST) Received: from magnesium.net (toxic.magnesium.net [207.154.84.15]) by mx1.FreeBSD.org (Postfix) with SMTP id 23B0A43D1D for ; Fri, 13 Feb 2004 05:34:51 -0800 (PST) (envelope-from adamw@magnesium.net) Received: (qmail 3633 invoked by uid 1252); 13 Feb 2004 13:34:51 -0000 Date: 13 Feb 2004 08:34:51 -0500 Date: Fri, 13 Feb 2004 08:34:51 -0500 From: Adam Weinberger To: Earl Smith Message-ID: <20040213133451.GF3365@toxic.magnesium.net> References: Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Disposition: inline In-Reply-To: X-Editor: Vim 6.2 http://www.vim.org X-Mailer: Mutt 1.5 http://www.mutt.org X-URL: http://www.vectors.cx X-ASL: 6/m/behind you User-Agent: Mutt/1.5.4i cc: freebsd-ports@freebsd.org Subject: Re: Writing covered calls X-BeenThere: freebsd-ports@freebsd.org X-Mailman-Version: 2.1.1 Precedence: list List-Id: Porting software to FreeBSD List-Unsubscribe: , List-Archive: List-Post: List-Help: List-Subscribe: , X-List-Received-Date: Fri, 13 Feb 2004 13:34:51 -0000 >> (02.13.2004 @ 0756 PST): Earl Smith said, in 1.1K: << > I found a stock selling for 42.76 - this stock looks to be on the rise. > The April 42.50 call last sold for 2.55. If I buy the stock for 4276 and > sell the option for 255, my cost basis in the stock is 4021. If the option > is exercised, it seems to me that I have 229 minus commissions. I think I > recognize some of the potential shortcomings for this strategy - the stock > might not rise enough for the option to be exercised, or the stock might > fall, in which case I wouldn't be called; the stock might rise enough for > me to have made more money buying the stock and selling it at a profit; I > might not be able to find a buyer for the option. > > Are there some other pitfalls that I don't see? > > Thanks, > Earl Smith > t_esmith@hotmail.com > > _______________________________________________ > freebsd-ports@freebsd.org mailing list > http://lists.freebsd.org/mailman/listinfo/freebsd-ports > To unsubscribe, send any mail to "freebsd-ports-unsubscribe@freebsd.org" >> end of "Writing covered calls" from Earl Smith << You should invest in MC Hammer pants. Those things are due to become super popular any day now. # Adam -- Adam Weinberger adam@vectors.cx // adamw@FreeBSD.org // adamw@magnesium.net http://www.vectors.cx