Opinions
Michael Bowman
First Asset Can- Fin. Covered Call
FXF-T
DON'T BUY
Oct 30, 2013
$9.900
Stock price when the opinion was issued
E.T.F.'s
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You have to look at Covered Calls and see how they work. E.G. He has a stock at $20 and is going to sell a December $22 Call for $0.50. He brings in $0.50 and he can do anything he wants with it. However, he has entered into an obligation in that if he is Called he has to sell his stocks at $22. In December, if the stock is at $25, he has to sell his at $22. Therefore, in this case, if you are bullish on financials, you do not want to be in a Covered Call situation. In a Bearish or Bullish market that is going up or down, this is not the thing to own.