From owner-freebsd-ports@FreeBSD.ORG Fri Feb 13 07:57:28 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 4C71B16A4CE for ; Fri, 13 Feb 2004 07:57:28 -0800 (PST) Received: from sccrmhc13.comcast.net (sccrmhc13.comcast.net [204.127.202.64]) by mx1.FreeBSD.org (Postfix) with ESMTP id 1633F43D1D for ; Fri, 13 Feb 2004 07:57:28 -0800 (PST) (envelope-from rberry883@comcast.net) Received: from comcast.net (user-112vbnq.biz.mindspring.com[66.47.174.250]) by comcast.net (sccrmhc13) with ESMTP id <2004021315572601600cgde4e> (Authid: rberry883@comcast.net); Fri, 13 Feb 2004 15:57:27 +0000 Message-ID: <402CF44F.7010607@comcast.net> Date: Fri, 13 Feb 2004 09:59:11 -0600 From: RickB User-Agent: Mozilla/5.0 (Windows; U; Win98; en-US; rv:1.6b) Gecko/20031205 Thunderbird/0.4 X-Accept-Language: en-us, en MIME-Version: 1.0 To: Earl Smith References: In-Reply-To: Content-Type: text/plain; charset=ISO-8859-1; format=flowed Content-Transfer-Encoding: 7bit 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 15:57:28 -0000 Earl Smith wrote: > 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 > > _________________________________________________________________ > Create your own personal Web page with the info you use most, at My > MSN. http://click.atdmt.com/AVE/go/onm00200364ave/direct/01/ > > _______________________________________________ > 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" > Why don't you give us the name of the stock and we'll investigate it for you. We wouldn't want you to make a bad investment. rberry88