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Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Comment by aclcmcon Jul 01, 2011 5:55pm
317 Views
Post# 18789269

RE: RE: Diversification

RE: RE: DiversificationBioB: That's actually a pretty good strategy for Yellow investors, especially those in it primarily for the income opportunity. So you get Yellow's money every month, topped up by the 50 cents a share for the January $3 write. Even if Yellow drops further, you can buy back your $3 January call write, re-write a January $2.50 and keep the game in play with continuing decent income. And if Yellow happens to spike in price – and if you still want to hold – you can buy back your January $3 call and "roll up," maybe to a $3.50, maybe to a $4. Pretty smart play, actually. Geez, I haven't written calls in 20 years – I may re-visit this if and when Yellow recovers its SP a bit. aclcmc 
Bullboard Posts