Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 268.87

+4.6%

Jan 2 9:30 AM EST

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To: Jerome who wrote (48672)	7/3/2001 1:26:06 PM
From: Ian@SI	of 70976

Jerome, I've tried to stay out of this. However,... 1. Covered call writer CANNOT change his mind and sell the shares affected by the Call without first buying back the call. 2. Covered call writer foregoes all profits beyond current price + premium less commissions. Writing calls now when stocks have sold off sharply increases the risk that one will be disappointed in short order. Its a great strategy during a period when the market or the stock is forming a base. One gets a nice monthly "dividend" while waiting for something to happen; but when it does happen, all but the nimble will miss out on the run. I see nothing wrong with a novice paper trading for a while before risking his assets. IMO, Ian

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