Replies to post #280543 on The Golden Lounge

[Wayne R]

First, once they approach being in the money, that is when you buy them back and immediately write more out of the money calls.

Anyway, it is a strategy once you get your head around it. Knew a guy years ago....lemmee think, maybe Nortel, that went bust, owned like 100K of the thing and every month wrote out of the money calls. In 8 months he had recuperated his initial cost. 3 years later he was up 700K

Just something to think about.

1.60 for a 20 call when the stock is at 17.60 seems like a gift.