Friday, July 18, 2008

Naked, not!

I only sell covered calls . . .

Late June I bought a couple hundred shares of Rambus for the specific purpose of selling a couple calls. Perhaps, I rationalized, I could reverse Rambus's fortunes. Nuts.

The 200 shares I bought lost about three bucks each, slightly offset by the 72 cents the calls captured.

I am going to do it again. Come Monday, I will sell August calls on the 200 shares at a strike price of $22 or higher. After commissions, I might net $50.

Imagine the anguish I will suffer if I am called out? It's a labor of love, it is.

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