Covered Call Analyzer Aggressive "STOCKS-TO-CONSIDER"
This October saw another major drop in market prices. As suggested in our strategy and philosophy section (strategy 11) everyone should have had a "get out" price and invoked it this month. We did and were able to soften the financial blow. For educational purposes, however, we are going to assume that we were only able to invoke the "get out" price on every other of our "Stocks to Consider" list. We will try to dig ourselves out of the deep loss on each of these over the next few months. We did a similar exercise in July of 1999 to show how to dig out of a really bad situation, where we reduced a $40,000 loss to a loss of about $15,000 over 8 months. You will see a lot of red on this page for the next few months. Cut losses by about $6,000 in November, and another $3,000 in December.
|
Company Name |
Stock Symbol |
Stock Price |
# of shares |
Total Cost* |
Option Symbol |
Oct Option Price |
Income from sale* |
Strike Price |
Projected return if Called after one month* |
Actual $ return* |
Actual % Return* |
|
Go.com |
GO | $12.563 | 700 | $8,889 |
GOJC |
$1.688 |
$1,182 | 15 | 31% |
($875) |
-10% |
| Comments: |
Exercised the "get out" price of 10.00 (20%) after buying back the calls at $0.375. |
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|
Looksmart LTD |
LOOK |
$14.563 | 600 | $8,833 | UOOJW |
$1.00 |
$600 | 17.5 | 26% | ($5,288) | -42% |
| Comments: |
Not called in October. Purchased an equal amount of shares at $6.125 averaging down to $10.4065. Sold Nov10 at $0.25. Not called. Sold Dec10 at $0.25. Holding. Sold all shares at $5.00. |
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|
Cell Pathways |
CLPA | $28.375 | 300 | $8,608 | QJCJF |
$5.125 |
$1,538 | 30 | 22% | ($375) | -4% |
| Comments: |
Exercised the "get out" price of $23.00 (20%) after buying back the calls at $1.00. |
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|
Harmonics, Inc. |
HILT |
$25.975 |
300 |
$7,888 |
LOQJF |
$1.813 |
$544 |
30 |
21% |
($4,699) | -60% |
| Comments: |
Not called. Holding. Sold all shares at $8.50 to close out position. |
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|
SpeedFam-IPEC |
SFAM |
$13.938 |
700 |
$9,852 |
FQFJC |
$1.313 |
$919 |
15 |
16% |
($1,313) | -13% |
|
Comments: |
Exercised the "get out" price of $11.00 (20%) after buying back the calls at $0.25. |
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|
Adaptec, Inc. |
ADPT | $23.00 | 400 | $9,042955 | APQJE |
$1.75 |
$700 | 25 | 15% | ($2,900) | -31% |
| Comments: |
Not called. Holding. Sold all shares at $14.00 to close out position.. |
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|
SuperGen, Inc. |
SUPG | $21.125 | 400 | $8,545 | UQGJX |
$2.063 |
$625 | 22.5 | 13% | ($1,025) | -12% |
| Comments: |
Exercised the "get out" price of $17.00 (20%) after buying back the calls at $0.50. |
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|
New Era of Net |
NEON |
$22.250625 | 300 | $8,533 | QNOJF |
$2.438 |
$731 | 30 | 14% | +$297 | +2% |
| Comments: |
Not called in October. Purchased an equal amount of shares (300) at $16.00 averaging down to $22.0625. Sold Nov20 at $1.50. Called in November at $20.00 |
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|
At Home Corp |
ATHM |
$16.50 |
600 |
$9,995 |
AHQJW |
$1.25 |
$600 |
17.5 |
13% |
($1,350) | -14% |
| Comments: |
Exercised the "get out" price of $13.25 (20%) after buying back the calls at $0.25. |
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| Comdisco | CDO | $24.00 | 400 | $9,695 | CDOJE |
$1.75 |
$700 | 25 | 10% | ($3,700) | -38% |
| Comments: |
Not called. Holding. Sold all shares at $13.00 to close out position. |
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|
All positions closed out with value down ($21,226). |
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*After the effect of all commissions.
The stocks listed above are for illustrative and educational purposes only and should not be construed as an endorsement, recommendation, or solicitation to buy or sell any particular security.