Christian,
You are partially correct that "There is no way to ensure this now....".
Via close monitoring and/or a conditional order outstanding, which my
brokerage allows/provides, there is a way to virtually ensure the stock does
not get called away.
Yes, if I get called out on the 29's normally I would be called out on the
29's, however I normally only write CC's on half of the shares I own. This
provides a cushion to take additional action is the market should move
against me. In the case of the MSFT example I would not be short as I own
additional shares.
Yes, I could sell the puts, but I do not necessarily want additional MSFT
shares at this time.
Thanks for the input.
Tony
----- Original Message -----
From: "christianhgross" <christianhgross@
To: <OptionClub@yahoogro
Sent: Saturday, September 26, 2009 4:07 AM
Subject: [TheOptionClub.
> --- In OptionClub@yahoogro
>>
>> Looking at Covered Call Ratio Writes on MSFT and wanting to get other
>> thoughts and inputs.
>>
>> Situation/Scenario is as follows:
>> 1. MSFT currently @ $25.94
>> 1. Want to retain stock and NOT have it called away.
>
> There is no way to ensure this now is there...
>
>> 2. Looking at either writing 10 Nov. 28's Calls (MSQKC) @ $0.70 OR
>> 20 Nov. 29's Calls (MSQKX) @ $0.40
>
> If you get called out with the 29's then you will probably be 1000 shares
> short of Microsoft.
>
>> 3. Buying 10 Nov. 30's Calls (MSQKF) @ $0.10
>>
>
> Ok..
>
> Here is another option. Sell the puts. If MSFT goes down, you just get
> more MSFT shares and that's maybe what you want in the first place.
>
> Christian
>
>
>
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