DELL Daily Chart Covered Call Stock Option Trading Example #3

by David Jenyns on May 2, 2006

DELL Daily Chart Covered Call Stock Option Trading Example #3
A Dell Stock Option Trading Example – NOTES ON DELL COMPUTER (DELL) – Covered Call stock option trading – 1. After dropping out of a higher stock option trading range, Dell trades down throughout the months of December 2002, January 2003 and into mid-February 2003 before bottoming out. During this period of time, the drop was a low volatility, gradual one in which the stock loss could have been well offset by premium collection. 2. After rebounding off a low around $22.50 in mid February, Dell rebounded quickly to the $26.00 -$27.00 level where it consolidated until mid-March. They were stock option trading in a tight band until the stock starting to trade up.

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