The Covered Calls for Dummies Thread Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Covered Calls for Dummies Thread

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Lance Bredvold who wrote (22)	4/19/2001 6:43:48 AM
From: alanrs	of 5205

A couple of things I have learned in the last 6 months. NO market orders on options. Buy the common back if you are called and want to own the stock. Personally, I have had great success selling covered calls way out of the money with short to medium expirations and buying as much time as possible (LEAPS) when buying. I tend to buy back when satisfied with the return-typically 30% in a day or two, or 50% if held longer. I also tend to only sell a cc if I can get a strike price at which I would not be unhappy getting called. Am looking to sell cc's on TQNT, CREE, and WIND today or near future. Looking at Aug. 01 30's at strike prices around $3.50-4.00. This seems to satisfy my urge to trade. I know I'm jinxing myself by saying so, but I have yet to lose money on an option, and have generated an income roughly equal to what I make at work, while only putting a small portion of portfolio at risk (30% max), and then only part of the time (roughly 50%). I know there is a catch somewhere in this, but I haven't found it yet. Looks like the financial fountain of youth to me. Off to work. ARS

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next