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you didn't really make 41%, but only would have made 41% if you had been able to roll over you call a number of times with the stock not moving from its original position.

By selling the calls against the long stock position, it was a chance to make 41% annualized, as opposed to either a lesser yield in the same time frame without selling call premium or, as a long-shot which isn't part of my strategy, a huge gain if, say, the company gets bought.

I had already sold calls against this stock a number of times in previous months, but that doesn't seem pertinent to your response.


I really don't like annualizing covered call returns because it is totally unrealistic to assume that the stock won't move and you will be able to roll over covered calls a number of times.

I'm assuming the stock will move and that the short calls will be exercised, and that's regardless of the ability to roll the calls.

It seems that a stronger argument against discussing annualized gain is that the gain on each trade would have to be replicated for term 'annualized' to be meaningful.


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