A better term for what you are doing is speculation, not investing -- as your position is time sensitive and there is no assurance that you will receive a return _of_ your principle.
On Jan 04 02:53 PM henarl wrote:
> An excellent article by one of the most astute contributors to SA...
A better term that described what you are doing is speculation, not investing -- as your positions are time sensitive and there is no assurance of a return of your principle.
On Jan 04 02:53 PM henarl wrote:
> An excellent article by one of the most astute contributors to SA.
> > I purchased TBT on 12-23 at $36.557 and immediately sold Mar. 09 > covered calls at $38 for $4.00, making my net investment $32.557. > TBT is now at $39. If I am called away in Mar. I will make $1.44 > on share price plus $4 option premium, or $5.44 on an investment > of $32.557 in three months or an annualized return of about 64%, > counting commisions. If TBT is under $38 on Mar., I will sell more > coverted calls. If TBT is below $32.557 on Mar., I will have made > a poor investment.
Time To Short Treasuries? [View article]
Time To Short Treasuries? [View article]
On Jan 04 02:53 PM henarl wrote:
> An excellent article by one of the most astute contributors to SA...
Time To Short Treasuries? [View article]
On Jan 04 02:53 PM henarl wrote:
> An excellent article by one of the most astute contributors to SA.
>
> I purchased TBT on 12-23 at $36.557 and immediately sold Mar. 09
> covered calls at $38 for $4.00, making my net investment $32.557.
> TBT is now at $39. If I am called away in Mar. I will make $1.44
> on share price plus $4 option premium, or $5.44 on an investment
> of $32.557 in three months or an annualized return of about 64%,
> counting commisions. If TBT is under $38 on Mar., I will sell more
> coverted calls. If TBT is below $32.557 on Mar., I will have made
> a poor investment.