YHOO covered call strategy
Buy Stock &
Sell Covered Calls
on YHOO at $16.
Dec 16th expiration
Options are 62 cents.
Return potential = 4% in 9 days
Risk is a loss starting at $15.38.
With takeover bids surrounding
YHOO, there is risk that no deal
gets done by year end and a drop
down to the $14 area where the
stock was prior to renewed t/o talk.
YHOO is a reasonable value in the
sector so buying the stock is comfortable
for me with or without a deal. For now,
it makes sense to make some extra
income from the speculators who are
paying relatively high prices for YHOO
call options in the hopes of a higher deal.
By: Technical Tim, 10:16AM EST, Mon Dec 5, 2011
Sell Covered Calls
on YHOO at $16.
Dec 16th expiration
Options are 62 cents.
Return potential = 4% in 9 days
Risk is a loss starting at $15.38.
With takeover bids surrounding
YHOO, there is risk that no deal
gets done by year end and a drop
down to the $14 area where the
stock was prior to renewed t/o talk.
YHOO is a reasonable value in the
sector so buying the stock is comfortable
for me with or without a deal. For now,
it makes sense to make some extra
income from the speculators who are
paying relatively high prices for YHOO
call options in the hopes of a higher deal.
By: Technical Tim, 10:16AM EST, Mon Dec 5, 2011
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.