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Strategies & Market Trends : The Covered Calls for Dummies Thread
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To: JohnM who wrote (840)5/31/2001 12:12:03 AM
From: FaultLine  Read Replies (2) of 5205
 
Good evening John,

I try to buy back on down days when the premiums are low just as you indicated. Conversely though, I try to sell on up days when optimism reigns and the premiums are puffed up from the positive atmosphere. I personally think now is a bad time (maybe the worst) to write a contract because the premiums have collapsed the last few days.

Concerning NUVO, take a look at these quotes:
options.nasdaq.com

As you can see the DBEGV JUL 12.50's closed at $1.15 so I think you've slipped up somewhere. Note also the premium fell today by a buck, as you would expect from today's market activity.

In short, the buy to close sounds good but I'd wait for more optimism to sell new contracts. Remember, you are trying to buy low, sell high -- just in the reverse order.

--ken/fl

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