How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Herm who wrote (5141)	10/2/1997 8:38:00 AM
From: Douglas Webb	of 14162

Actually, I wasn't even talking about defensive moves for a falling stock; I was talking about our ordinary write-at-the-peak, cover-at-the-bottom strategy. If the stock moves from band to band in just a couple of weeks, you've got to use high-delta options so that you can cover and still have a good profit. A slower moving stock will let you go further out, since you've got more time for the price to decay. It's a good thing the longer term options have higher premiums; you can't go through as many write-cover cycles per year with them! Doug.

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