In Options Xpress you actually click on the type of trade you want to do -- Cover Calls is one of those options. JW may be able to walk you through it better - I think he's already crunched the numbers on ETFC.
Hey Jon - Sorry I've been out of pocket -i've been working in the yard for 3 days.
In short you can write 45 covered calls on your 4500 shares. The $1800 I was talking about was based on .40/share for the June $4 calls. If you can't figure out how to place it in Etrade call them and tell them what you want to do. Ask them to help walk you through it. If they give you a fit - which they shouldn't - the beautiful thing about owning stock is you can transfer it to another broker :) Options X press is a breeeze.
I will get a hold of Etrade to see exactly how I want to do this. What I would like to do is to write a $4.00 May CC for the 2500 shares I purchased around or under 3.75, and hang on to the other shares here for a little while. If I only am contracting around half my shares, then I will probably take the $ from the CC and cost average down the other 2000 shares. That is my plan, but I am not exactly sure how to contract only a certain lot of shares. I'll give them a call and see what happens. I'll keep you guys posted.
5 comments:
In Options Xpress you actually click on the type of trade you want to do -- Cover Calls is one of those options. JW may be able to walk you through it better - I think he's already crunched the numbers on ETFC.
Hey Jon - Sorry I've been out of pocket -i've been working in the yard for 3 days.
In short you can write 45 covered calls on your 4500 shares. The $1800 I was talking about was based on .40/share for the June $4 calls. If you can't figure out how to place it in Etrade call them and tell them what you want to do. Ask them to help walk you through it. If they give you a fit - which they shouldn't - the beautiful thing about owning stock is you can transfer it to another broker :) Options X press is a breeeze.
J-
Jon - Are you trading on Margin?
No I'm not trading on margin.
I will get a hold of Etrade to see exactly how I want to do this. What I would like to do is to write a $4.00 May CC for the 2500 shares I purchased around or under 3.75, and hang on to the other shares here for a little while. If I only am contracting around half my shares, then I will probably take the $ from the CC and cost average down the other 2000 shares. That is my plan, but I am not exactly sure how to contract only a certain lot of shares. I'll give them a call and see what happens. I'll keep you guys posted.
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