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$70 a share...sorry ,but im excited
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<blockquote data-quote="1989" data-source="post: 727140" data-attributes="member: 10280"><p>If you plan on holding a stock anyway, you can't get burned on covered calls. (I was holding 300 shares in a useless Mellon account) You are just capping your gains. Selling naked puts, however, can give you a beat down. </p><p></p><p>Looks like I will go long again at a cost of $65.18 with the stock much lower and miss out on the divy. I lose out on the $141 in dividends. But By not holding at $69.50 I essentially got a $695 tax free dividend.</p><p></p><p>On Friday the June $67.30 calls are $1.40...$65 calls $2.34...$62.50 calls $3.65. The $65 calls are 125% of the yearly dividend. And you would only have to hold it for 43 days instead of 365 days. You would earn $5.44 a day. Of course as expiration comes nearer the prices will reflect the stock price.</p></blockquote><p></p>
[QUOTE="1989, post: 727140, member: 10280"] If you plan on holding a stock anyway, you can't get burned on covered calls. (I was holding 300 shares in a useless Mellon account) You are just capping your gains. Selling naked puts, however, can give you a beat down. Looks like I will go long again at a cost of $65.18 with the stock much lower and miss out on the divy. I lose out on the $141 in dividends. But By not holding at $69.50 I essentially got a $695 tax free dividend. On Friday the June $67.30 calls are $1.40...$65 calls $2.34...$62.50 calls $3.65. The $65 calls are 125% of the yearly dividend. And you would only have to hold it for 43 days instead of 365 days. You would earn $5.44 a day. Of course as expiration comes nearer the prices will reflect the stock price. [/QUOTE]
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$70 a share...sorry ,but im excited
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