Fantasy QCOM covered calls: Current price of the underlying: 45.23 If we're assuming a bearish market tone, we'd sell to open the Feb 45 calls (AAOBI)with a limit order at the bid, currently: $2.00 This means that is QCOM is trading below $45 per share at February expiry, you collect $200 per contract sold, minus brokerage fees. Let me know if you want another scenario. Smooch! <img src=http://sulu.smpp.nwu.edu/utilities/picture/icons_and_buttons/anim_kiss_n_wink.gif>