[RT] Selling Covered Calls

[MikeSuesserott@xxxxxxxxxxx]

Hi Ben,

the charts I sent depict the position you first gave, using March and April
options. If you can indicate the day you entered your actual position (and
providing I still have the historical data for volatilities etc.), we can
have a look at that chart, too.

Best regards,

Michael Suesserott



> -----Ursprungliche Nachricht-----
> Von: profitok [mailto:profitok@xxxxxxxxxxxxx]
> Gesendet: Tuesday, February 19, 2002 18:56
> An: realtraders@xxxxxxxxxxxxxxx
> Betreff: Re: [RT] Selling Covered Calls
>
>
> dear Michael
> the software you are using has a flow
> it shows  that at  33.9   price I am at a loss
> this will never happen
> my principle loss is covered  by my long put
> Ben
> ----- Original Message -----
> From: <MikeSuesserott@xxxxxxxxxxx>
> To: <realtraders@xxxxxxxxxxxxxxx>
> Sent: Tuesday, February 19, 2002 12:31 PM
> Subject: [RT] Selling Covered Calls
>
>
> > Ira,
> >
> > I am so glad to hear that you were able to retire early (I was,
> too), and
> > that you believe you understand options.
> >
> > Unfortunately, your analysis is still totally wrong. Ben's original
> position
> > is indeed equivalent to a calendar spread, and furthermore, risk is
> totally
> > limited here.
> >
> > To prove this, please find attached two charts. The first one, ben.gif,
> > shows Ben's position as originally indicated by him. The second chart
> shows
> > the equivalent calendar spread. If you were to superimpose
> them, you would
> > find them exactly congruent.
> >
> > You may also notice that there is no unlimited risk, and that
> the greatest
> > profit potential is to the upside.
> >
> > Regards,
> >
> > Michael Suesserott


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