There’s coffee in the kitchen. I’ll be right down.” Carla let herself in, and went through the living room to the dining room toward the kitchen. She saw what appeared to be one of Gerald’s socks lying in the open piano, and smiled to herself. Setting the cheese cake on the counter, she opened a cupboard and took out a coffee mug. She was just finished filling it, when Alice appeared in the doorway, her finger hooked through the handle of an empty mug. “While you’re at it, do you mind giving me a refill?” Alice asked. “Not at all. While I fix our coffee, and slice the cake, you can go take the dust rag out of the piano,” Carla said, and gave Alice a big grin. Alice blushed, set the coffee mug down, and hurriedly left the room. Presently, she reappeared, tucking something into the pocket of her jeans. Carla, seeing her chance to needle a bit, said, “I like to put my socks into my jeans pockets when I wash them. That way, I’m not giving one away each time I do a load of laundry.”. What would be the con for investing this way?"She thought for a minute, and then said, "Sometimes the markets or a stock moves in a big way with huge moves. If Home Depot got hot, and jumped up to fifty overnight, like after some kind of favorable news, then we'd get bought out at thirty, and miss out on the additional twenty dollars a share. If we sold the stock then we'd find ourselves exposed for the amount of the call, times the number of shares." If we sold the stock, we could and would buy back the calls first or close the position. We could also do that if we thought the price would rise over our strike or purchase price. You were right the first time. That means that you'll need to feel comfortable with what you'll be walking away with, which in this case is a fifty percent return, and be happy instead of hoping for a hundred percent return because of a possible news story." I'll have to do some paper trades to get comfortable with this new strategy. For most of our long-term.
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