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Money Matters
Financial, Stock, Investment etc. posts here.

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Old 08-17-2012, 06:46 PM   #1
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Covered calls?

Anyone have strong feelings regarding writing covered calls?


Especially NAV.

Thanks for your input.

Guns up.
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Old 08-19-2012, 10:40 AM   #2
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I'm also trying to decide how to get out of Aapl.

I'm in at $350. Any suggestions?

Guns up.
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Old 08-21-2012, 12:21 PM   #3
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For NAV if you did a Buy/Write today, you'd breakeven around 23.50 if it went down, below that you'll lose money. A 3% move up, however, would be the top for your gains though at $1,775 ish with current prices which would still be a really nice return over the next month. I personally like using covered calls on positions I hold if I expect to hold them through expiration and anticipate they will stay flat or slowly rise. I'm not a big fan of using them to hedge against a drop in stock price but they are good for that as well (supposing the drop isn't too large). With current volatility in NAV my tools show a 36.4% chance it's below 22.71 by SEP 12 expiration, and a 54.5% chance it's below the current price, FYI.

As for AAPL, why are you trying to get out? Getting out is always simple, put in a market order to sell

Last edited by Wraisil; 08-21-2012 at 12:24 PM.
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Old 08-24-2012, 05:21 PM   #4
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Why not just write an uncovered put?

"What's all this I hear about a brownie in motion?" - Accountant
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