Stock Options Trading 101 - crazy returns!

This is an interesting trade for RIMM.
Here’s a live screen shot of a possible return you can get on share renting/share leasing/covered calls… (stock options trading)

If you write the $100 call options (give somebody the right but not the obligation to buy your shares) and they will pay you $7.2 premium!
This effectively makes your breakeven point at $92.80 (Red Line)… If the stock stays above $100 (Green Line) then you make $7.2
If you margined this trade, you’ll be making 14.4% return in 39 days! insane isn’t it??

Anyways, just wanted to show you what is possible… hope you enjoyed this cool Stock Options Trading example

PS: I didn’t do this trade, will be making my trade next Monday…

RIMM 20071113

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