Archive for May, 2007
romanzoffia asked:
I bought SAP shares in Oct at $56+. I rolled down my covered calls bringing my breakeven to $49. They are currently about $52. I am happy enough, but there was no real science to my timing when I rolled down, except that I came home and found my calls almost worthless again and again as the price of the shares fell How can I judge how and when to roll down to make as much as possible from rolling down call options as stock price falls?
Randall Williams
I bought SAP shares in Oct at $56+. I rolled down my covered calls bringing my breakeven to $49. They are currently about $52. I am happy enough, but there was no real science to my timing when I rolled down, except that I came home and found my calls almost worthless again and again as the price of the shares fell How can I judge how and when to roll down to make as much as possible from rolling down call options as stock price falls?
Randall Williams
Les R asked:
MBIA has a Janurary 20 call that offers 14.8% Time Value and 15% Downside Protection. This seems to good to be true so it probably is. What must one look at when you find large Time Value in the current months calls. I am writing covered calls as an investment strategy.
Rudolph Nunamaker
MBIA has a Janurary 20 call that offers 14.8% Time Value and 15% Downside Protection. This seems to good to be true so it probably is. What must one look at when you find large Time Value in the current months calls. I am writing covered calls as an investment strategy.
Rudolph Nunamaker



















