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

STOCKTALK

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

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Russ B who wrote (7978)	7/28/1998 1:25:00 PM
From: Herm	of 14162

Thanks Russ! The general rule is "as CHEAP as you can get em!" You basically are using the CC premies to leverage with the purchase of the opposite option instrument. buying PUT/CALLs as a sideshow will be the cheapest at that point of the W.I.N. strategy. You will know when you look at the strike price possibilities. Open interest will steer you in the right direction along with the amount of time remaining until the expiration. So, if you are two days away from experation, that would not work in your favor. The next month would be the logical choice at what ever strike price that would make it very profitable. Generally, two strike prices down for the PUTs and one strike price up for the CALLs. You might decide to go out more months and lower strike prices. Alot depends on what the chart reads in RSI and BB price and trading pattern for that stock. I can tell you that technology stocks move up/down in totally extreme movements versus Kmart or Ross Stores.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next