Tested on AAPL a synthetic covered call. Situation I intend to use this is when ZLR or RSI rises from oversold.
Use cc 30 200 5A ATM to screen stock. 2 strikes giving high premiums.
Stock price when bought 187.88
.apvfr@6.01 (190C)
.apvfs@-3.94 (195C)
.apvrq@-5.29 (185C)
Net credit is 3.22. BE for stock is 184.66. WWDC round the corner. iPhone 3G expected. Other surprises may be instored.
Also tried using CC 30 200 5A OTM. This time RIMM.
Stock price when bought 137.26
.rulfh@3.46 (140C)
.rulfi@-1.7 (145C)
.rulrw@-3.94 (135C)
Net credit is 2.18. BE for stock is 135.08. RIMM has new models and earnings at the end of month.
Another one is ANR. Stock @85.66
.anrfq@5.71 (85C)
.anrfr@-3.29 (90C)
.anrrq@-4.39 (85P)
Net credit is 1.97. BE for stock is 83.69. This seems to have higher ROI if assigned. However, this stock was bought at market price - try to avoid in future. China just raised coal price today so bull run expected.
Learn to see how to maintain and repair.
Be faithful. Sim trade first. Fear vs Greed ! Ultimately, have to trust.
