>> I do have a problem with the "random" selection of April 2000 to wish you had started.
You caught me <lol>. That's like saying I wish I had sold at the top, isn't it?
>> Why did you not select, say October 1999, to wish you had started covering your stock? In hindsight, stocks were overvalued then, also.
Because I was Superman in 4Q99, and didn't realize that Mr. Market was about to dose me with kryptonite. You're right of course, but I have the right to hang on to my fantasies <gg>.
>> the true value of this board, and of the CC theory, will be determined when some of our covered stock runs away from us, and the options purchasers make the big money. It will happen.
It's already happened. I was called out on sebl 30s last month. I waited for a dip, bought back the same dollar amount of the stock, and starting writing again. I was chagrined, but not deterred.
>> If your mental response to that last paragraph was "so what, I made my 10%" then this is the place to be.
The cc model I developed in January had me selling 10% otm calls for a 5% premium. As the market worsened I began to sell atm calls. In today's environment I am leaning towards the original model, but if the market should show signs of life, I may just settle for 2.5% return and sell 20% otm. My point is that there is flexibility in writing cc's, and the strategy can be modified to match market conditions.
duf@busted.com |
