What Stock Are You Interested in Selling Calls On?
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What Stock Are You Interested in Selling Calls On? Dan,
Thanks for your remarks. I was aware of the proxy fight
and that the results should be out within the next 10 days. Having
that information and given the possibility of a 15.2% gain from the
QSII price of $18.46 [$1.54 gain from current price of $18.46 to
the strike price of $20.00 + the net premium income of $1.27 = 2.81/18.46 =
15.2%. That's the possibility on the upside.] The downside
protection was 6.8% [$18.46 - 1.27 (net premium income). 1.27/18.46 =
6.8%.] I know there are no guarantees and I certainly don't claim to know
what will happen with QSII during the next 10 - 127 days but it seemed like a
reasonable risk for a reasonable return over a reasonable period of
time.
I appreciate your feedback.
Butch
In a message dated 8/19/2012 8:53:50 A.M. Central Daylight Time,
danhess@nc.rr.com writes:
In our investment club we also
filled the following order:
Aug 14, 2012 Sold 1 QSII Dec 22 2012 20.00 call @
1.35. QSII was @$18.46.
With Aug expirations taking place today I have new covered call orders ready to be placed on Monday, Aug 20th. Orders being considered are:
1.
12 LLTC Sep 22 2012 34.00
2.
22 LVLT Sep 22 2012 24.00
3.
32 POT Sep 22 2012 45.00
4. 7
UNH Sep 22 2012 55.00
May you do well with your covered call
options.
Butch
In a message dated 8/18/2012 7:26:59 P.M. Central Daylight Time, etana.finkler@gmail.com
writes:
Butch, Hello all, I'm leaning toward Butch's way of thinking. I also just sold September $20 calls on some of my QSII. I do agree with you Dan, that the situation with the proxy battle brings with it the type of risk that comes with selling calls across earnings release dates. However, I felt there was a reasonable chance the recent stock price reflects close to what will be the norm for a little while. Enough for me to try and earn a little extra on either the upside or the downside. Reading the last QSII earnings report and listening to the conference call, I do have concerns about the immediate prospects for earnings growth. However, I'm not convinced this is not a good, growing business area in general. I also believe that QSII has a reasonably strong foothold in the industry. Certainly strong enough to make it a potential takeover candidate if the price dropped too low. But, I think visions of the future are much more murky now that they have lost the big hospital contract. I'm not really ready to sell all my QSII, but I did feel that I wouldn't be uncomfortable paring down my holdings a bit if the price did rise in the immediate future. If it doesn't, I felt I could earn some income on the stock I already have if it takes a while for them to work things out and the stock price stagnates or falls for a while. Just my $.02. It will be very interesting to see what happens. It certainly has been an interesting soap opera reading the SEC filings that were flying back and forth every day before their annual meeting. Laurie Frederiksen Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe On Sun, Aug 19, 2012 at 2:05 PM, <BandPLang@aol.com> wrote:
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