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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: JohnM who wrote (758)	5/23/2001 7:46:06 PM
From: StockHawk	Read Replies (2) of 5205

Found a link on the www.CoveredCalls.com site to a list of stocks with the highest premiums. Hi John, Frank already pointed out that a key aspect of your decision is the fact that you have been watching this stock and wish to buy it anyway. That's important. I believe that many people try to play the covered call game by searching out the stocks with the highest premiums. In general they are to be found on stocks trading for about $10, with a call one month out. It often seems that such stocks/writes are offering 13 to 15% a month. Unfortunately this is a dangerous game, which often plays out with several wins and then one huge loss. I believe it was Wade Cook who wrote The Wall St. Money Machine pitching this type of play. From articles I've seen, it has been claimed that he himself has not made money at it. Some will say that stop losses can protect you, and perhaps that is true, but imho the best way to play the covered call game is with the highest quality stocks, as is being done by most who post on this thread. StockHawk

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