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Strategies & Market Trends : A.I.M Users Group Bulletin Board

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To: RFH who wrote (8225)	8/15/1999 9:35:00 PM
From: B. J. Barron	Read Replies (1) of 18928

Robert...i enjoy your site...great work and lots of info to encourage us newbees...regarding writing covered calls...i spent 1q98 studying the strategy and next 6 to 7 month writing them on a portfolio of dow dogs that i have run for past 5 years...my impression was that it is a good way to increase st income from the premiums you get...an often was able to buy back at fraction when stock declined and rewrite another sometimes as quick as 3 weeks...but in the end every stock in portf finally got called...which messes up any long term strategy unless you are willing to buy the stock back as soon as you get call...i found this psych. hard to do...also if the stock really declines after you have written call the downside protection from prem is not very much...so you have to be patient with some down and out stocks or keep writing calls and try a repair scheme...i would think it would not add much to an aim strategy and could really mess up the lt return...now as a stand alone strategy for steady income and small amounts of st cap gains it can be done...bj

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