How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: bajasurf who wrote (11500)	9/8/1999 10:01:00 PM
From: George Cowsar	of 14162

You are right regarding high volatility and upper BB... You said: >> Its all well and good to say write premies when the top bollinger band is touched, but unless you are already in the stock, a buy/write when a stock is at that point is almost a sure loser. Right. You need to be in the stock already. The WINs strategy basically says buy the stock at or near the lower BB, and wait and sell an in the money call near the upper BB. Otherwise, like you said, you will probably lose. You could enter the position at the upper BB if you're impatient, but you probably won't make money, not yet anyway. I've found this out the hard way. BTW - Yes, I'm making money this round so far: I'm ahead about 5% in round 4. Now I just need to octuple my gains in round 4 to make up for round 2! My losses were not in the CC strategy, I was on the other side of the table buying calls in high volatility stocks... I'm finding that CANSLIM and CC strategies have been winners. So I'm trying a bit of both for now. Sometimes a CANSLIM stock in a basing period makes a good CC stock.

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