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Strategies & Market Trends : The Covered Calls for Dummies Thread
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To: Uncle Frank who wrote (315)4/29/2001 7:38:21 PM
From: BDR   of 5205
 
<<Roth does a pretty good job of describing them in his book, LEAPS.>>

McMillan is the definitive text but I find Roth easier to read and understand.

<<if one had been consistently selling front month slightly otm cc's on qcom since April 2000, I think they would have retained most of their profits, since those have yielded about 8%/month. >>

I did just about what you describe starting in December and kept all the premiums until the April cycle. The problem was that I was keeping premiums of 5+% while the stock (mostly techs) were dropping 20+% a month. It helped some but I still saw my equity shrink dramatically. I would like to have done better, though in the long run it may not matter. I am already back up quite a bit.
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