Friday, September 7, 2007

HPQ Closed For 85% Of Max Profit in 8 Days

By John Manley DMShttp://www.revolutionadvisory.com/On August 25, our highlighted Strategy of the Week was a neutral to bullish, In-The-Money Covered Call on Hewlett Packard.The max profit on these types of plays equals the time value (theta) collected on the short calls - which in this case was $1.06 per share. The objective of ITM CC’s (in the money covered calls) is to find a balance between a downside hedge (from a technical perspective) and return on at risk capital for the ti[...]

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[Source: The Money Blogs]

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