Slacker,
<<Since the market has been in a trading range over the last couple of months...it is hard to focus on the fact that a bullish run can happen at any time (like Qualcomm last winter illustrates). >>
Correct, and the next Q run may not(will not, IMHO) retrace. I've employed the sell CC/buy em' back strategy for some time now, but always way OTM calls. If I was using Jan 70's instead of 90-120's, I'd have made 2-3 times as much, but any solid run would have ended it. I am eyeing up Spring 2002 through the May 02' World Cup(HDR showcase) as the time to be uncovered Q and maybe get an opportunity to sell something like a Jan(03) on a strong Q rally.
My exit strategy for Jan 90's, if I re-write again, would be to let the stock go in the IRA's and re-purchase. I've increased my IRA Q stake 30-50% from the CC income over the last year+, so if I need to give back some, no problem. For taxable accounts, it really depends, but with margin available and the ability to re-write additional calls, it would take a rally well beyond 90(110-120, maybe) before I would need to seriously consider letting it go. I don't anticipate that in an environment where we only get one more earnings report, which I expect to be good, but not launch-pad material.
JMHO, Cooters |
