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: Patrice Gigahurtz who wrote (5989)	12/2/1997 5:52:00 PM
From: David Beckett	of 14162

Patrice It hurts to give away the upside, but you do cover some downside risk, and you don't know what the upside might be until its too late. I've taken to doing thorough FA & TA and then waiting to write the CC. If it drops first, then I buy an upstrike call. If it rises first then I write the CC when it gets within three of four weeks of expiration. If its moving fast, I'll hold longer before the CC. As the rally progresses I'll buy a protective put (the PP is a new part of my strategy learned from techstocks.com. I haven't yet tried the upstrike call when the stock rises first. Where I've really gotten hurt is when bad news hit just after buying the stock and having done nothing else. The FA & TA doesn't help then. I'm relatively new at this having just started this year. I only dabled until Oct. Peformance is at an annualized rate of 42% since March. I'm convinced that 100% and better will be achieved with improved technique. The mistakes do hammer home the reason for more complex strategies learned from this thread.

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