SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Covered Calls for Dummies Thread
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Mathemagician who wrote (670)5/19/2001 1:13:50 PM
From: Sully-   of 5205
 
Hi magicmath,

Didn't view it so much as a mistake..... it certainly wasn't the play of the month on this thread either :-
I actually did have a reason to enter the position. It was to attempt to take advantage of the quick 30% run JNPR had off it's low, while at that time there was still a clear down trend in the overall market. I wanted downside protection & I felt I could take advantage of the next pull back to uncover, take profits & cover again later at a higher strike price.

Don't get me wrong, I was also prepared to accept the excellent ROI if JNPR ran away from me too. I'll take trades like that any time! What surprised me was how far it ran & how fast it happened.

Essentially that's where I considered my move as, um.......... not so great. It was the size of the resulting opportunity cost that had me shaking my head.

FWIW, I like the safety (downside protection) that CC's provide & the premiums on stocks like JNPR, NEWP, NTAP, CIEN, etc., offer an excellent ROI even though there will be times when just holding the stock uncovered will provide significantly more upside.

I'm sure I'll make similar moves like that in the future. I'll still shake my head, but I'll have an excellent ROI realized to console me.

Cheers,

Ö¿Ö
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News