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: Herm who wrote (1510)	3/26/1997 11:36:00 PM
From: J. P.	of 14162

Herm, I bought 500 shares of MRVC at 19 and sold the April 22.5's. The stock has picked up steam and it's possible that the stock will move into the high 20's. This has led me to question the validity of this technique, since if you buy the stock on the fundamentals, and buy it cheap, the stock will probably increase rapidly, and you lock out your upside potential. I never really had a chance to buy cheap overstrike calls as the stock went up right after I bought it. Rolling up is not really possible, since the April 22.5 are around 4 bucks, and the May's are only about 2 bucks. What would you do in this situation? I'm glad that you're continuing with this thread. Jim

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