A couple of weeks ago, I bought 1000 shares of SMH and sold January 2007 $35 Calls for $0.85 and I’m contemplating buying them back since SMH has dropped down to $33.27 and those same calls are now selling for $0.25.  This would translate into a profit of $600 for a couple of weeks work.   I’m contemplating buying back the options because the volume and interest in the calls is high and I think the drop is temporary.  We’ll see what happens next week.

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