Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: RGAnthony Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1075  
Subject: Re: good time for Covered call? Date: 12/4/2011 11:31 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Dorsett,

If you are looking to sell your 100 shares ASAP then look at the Dec 11 calls that expire in 12 days.

LOW closed on Friday at $24.31 and using the bid price for the analyst. (you may get more by spliting the bid/ask). Below assumes you get called on the one contract.

The 22 strike will give you $.05/share.
The 23 strike will give you $.15/share.
The 24 strike will give you $.32/share.
The 25 strike will give you $.25/share.

So, the 24 looks about the best. Now, commissions will take some of your profit. So, 32 cent x 100 shares - $10 commission gives you about $22 extra from selling the shares outright.

I am not sure the covered call is worth it. However it is your call. If the stock goes below the $24 strike you still have the stock. You can sell another cover call for the next month but the price will be dropping.

Good luck and cheers,
Gary
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Post of the Day:
TMFDeej's CAPS Blog

Activist Investors Unlocking Value at LSB Industries?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement