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: paul ross who wrote (1408)	3/20/1997 1:22:00 AM
From: hpeace	of 14162

Paul, my strategy says watch a stk long enough to know you are neaar a low. then you try to get the stk and IF YOU HAVE TO PLAN for a big anouncement like earnings that can casue stk to go up qucik you would want to buy the upsrike call while stck s low, then on a rally you sell the call and buy the pp. but, only get the pp if you have annoucement that can go against you. Rost ..acct one. buy 50 mar 50's right before split at 2+. then on next day (24 hrs later) I have 100 march 25's that I paid 1+ for and they are worth 3 that's 10k to 30k in 24 hrs. This split play is the most rewarding. But, I sold 1/2 that postion for 2+. I let the last 50 mar 25's ride. i ended up selling those for 2++ and Net profit was 14,000. I got greedy and should have sold these for 3 and made 20k another acct I bot the stck on pull back to 25+ last week then sold that for a 2 point profit. I got 27.5 calls with .75 of that profit. cannot lose even if the 27.5 expire worthless. I'll make 6000 no matter what. Last accts i bot 15,000 shares at the 25+ pullback last week. I sold the 27.5 calls for 1 got those back for avg price of .19 and sold the 25 calls for 1.125 I'll make 22k on this play. By far it looks like the split play and hold it one day made the most money per the risk. ROST did the worst possible thing and I still made 40k in 3 weeks. This is about 138% increase annualized and that includes all the money I had tied up in stk. It's using the mcmillain formula.

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