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S&P 500
5,346.99
(
-0.11%
)
US TECH 100
18,488.00
(
-0.25%
)
Dow Jones
38,798.99
(
-0.22%
)
Brent Oil
79.40
(
0.00%
)
Bitcoin
69,379.58
(
0.07%
)
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maksim

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maksim

Re: None

Monday, 12/15/2008 11:34:58 AM

Monday, December 15, 2008 11:34:58 AM

Post# of 189
Leap Covered Call - SWHC - Smith & Wesson

Buy Stock @ $2.63
Sell Jan 2010 $5 @ $1

If Unchanged 61% Return, 56% Annualized
If Assigned 206% Return, 190% Annualized

Break Even - $1.63
38% Downside Protection

Reporting earnings today, the chart is bullish in some regards, and near the top in other views. Longer term, 1 year not going to matter.

With stock so cheap, doesnt make sense for calendar call. I would say this is an investment rather than a play.

You can even do it in an IRA.
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