Juniper Networks (JNPR) calls return 89%:
Our latest covered call trade involves Juniper Networks(JNPR). We have used JNPR before. Some were
called away others were not. One trade we thought about placing, was to short CSCO and buy JNPR. We felt at the time that JNPR would overtake CSCO in price, and it did.
This current trade consists of JNPR and the February 30 calls(.JUXBF). We already owned it at an adjusted cost of $17 from previous trades.
We wrote the calls on January 16th, 2004 as JNPR jumped over 30% to $30 a share. We received $1.45 on our calls. The next day it went slightly higher, so we were a bit premature.
The tech sector weakened and the calls subsequently expired worthless on February 23. Our return was 8.5% for 35 days or 89% annualized. Not bad.
The BullTrader 02/25/2004