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Strategies & Market Trends : The Covered Calls for Dummies Thread
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To: FaultLine who wrote (461)5/8/2001 12:05:23 PM
From: alanrs  Read Replies (1) of 5205
 
I wanted to add something to the post I made yesterday regarding premiums and such.
In the last month I have found very little that falls into the range I like to get. I sold one QCOM May '65 (a buy-write), and one TQNT Aug '40 in this time frame. Since I don't rely on this for income, I am still viewing this as an experiment (that I really don't have time for), with an eye to eventually reading the books recommended and actually learning what I am doing. In retrospect, it seems that making large premiums for very little time was easy the last half of last year, and large premiums for longer time periods was easy for the beginning of this year, but that the pickings are much slimmer now, even on up days for a particular stock.
I can see that if one was relying on this for income, one would have to pay much more attention to closer in time frames and closer to ITM strikes. It is probably the case that I wandered into covered calls at a particularly good time and that premiums were unusually large there for a while.
I didn't want to leave the impression that I had some magical way of getting $4 premiums on calls 150% over the current market price, with 3 months remaining to expiration.
It was nice while it lasted though, and I will keep looking for a similar situation.

ARS
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