FON Daily Chart Covered Call Stock Option Trading Example #4

by David Jenyns on March 17, 2006

FON Daily Chart Covered Call Stock Option Trading Example #4
A Sprint Stock Option Trading Example – NOTES ON SPRINT (FON) – Covered Call stock option trading – 1. After a large drop at the end of Jan 2003, Sprint consolidates around $12.00 and trades in a relatively tight stock option trading range, around $12.00, for approximately 5 months or until mid-May 2003. This period is the first opportunity for premium collection. 2. At the end of May 2003, Sprint trades up to the top of its stock option trading range in a slow, methodical way, indicating a period of decreasing volatility.

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