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A call option is a contract giving the owner the right, but not the obligation, to buy a specified amount of an underlying security at a pre-determined price within a specified time frame. Related tags are icall-options, options, options-assignment, option-exercise and should be used when appropriate.
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Calculating profits on a covered call. What method do you use?
Hey guys. I was having a discussion with someone about calculating profits on covered calls and I thought I'd ask the community's advice on which way is correct.
I buy....
- 100 shares of XYZ at $7. …
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Covered calls: How to handle this trade?
I bought XNPT (Xenoport) a couple of weeks ago at 6.93
I turned right around and sold the Apr 16 call. $8.00 strike and collected 1.50 in premium.
Today I get a great surprise that XNPT has rocketed …