SI
SI
discoversearch

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 ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Herm who wrote (11378)8/13/1999 7:29:00 PM
From: George Cowsar  Read Replies (1) of 14162
 
Herm: WINs follow up questions

Hi, and thanks for the report on IFMX activity.

I've reviewed good ol WINs and have some questions:

1. You tend to write calls 4 to 6 months out right? say the stock hits the upper BB, you write a call (say 5 months out) and buy a put. How far out of the money on the put and how far out in time?

2. When you CC leaps you like to own a leap that is 1.5 to 2 years out right? When you buy the leap I guess you are at the lower BB with low RSI hoping for a turnaround. Do you buy an at the money leap?

3. (Corollary to question 1) When you buy a side show call it would be in the same condition as in (2) above, right? Out of the money? how far out in time? a couple of months?

4. Do you sell the side show put or call at the same points (as you would buy the opposite) or do you tend to cash them in a little sooner?

5. The point of reversal is a tricky to pick. There are short term reversals with bounces towards the opposite band that are head fakes, sometimes they go all the way to the opposite band but the longer term bias is still unchanged. When you're looking at the "hard right edge" how do you make this decision on whether to buy back your call? And how do you decide when to do a side show? Is it partly based on whether enough of your CC premie has bled off (75 to 80%)? Can you expand on this.

thanks,
George
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News