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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: assetlogic who wrote (949)	6/7/2001 1:19:17 PM
From: adairm	Read Replies (1) of 5205

Hi assetlogic, you're absolutely right about the high commissions if you're doing onesy twosy trades. This is a game where "size really does matter"! There is a "rule of thumb" that you only do CCs on stocks $45 and under. I don't know who's thumb made that rule, but I've run across it several times in my reading. (Please don't ask me to provide a reference, I'd never find it!) But, if you can buy a hundred shares of a $40 stock, you can buy 200 shares of a $20 stock, and then you start to build up size. (Does anybody know any good $20 stocks? All the ones I have used to be $80 stocks, so they don't count! <grin>) Adairm

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