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 (1602)4/7/1997 9:42:00 PM
From: RayV   of 14162
 
Hi Herm
When you get a chance can you
talk a little more about
your 3 approaches mentioned
in the the last ROST report?

For example you say

Slow and Steady Style: Buy Calls First!

1. Buy TECD the April 22 1/2 Calls yourself. Wait for an appreciation of at least your break-even point.
Example, strike price + premium paid. $22 1/2 + $3 = 25 1/2 B.E.

Here I'm wondering why you buy these. That is, how does
this fit into the overall strategy? What are we
after here?

2. Execute a Buy/Write TECD April 25 Calls. Meaning, you buy the stock at market price(ask price) and at the same time you write covered calls at a net debit for the April 25 Calls. You will save a little bit on commissions.

Here I'm not sure if we do step two after step one? That is,
are we doing this in addition to step 1?

3. When the TECD stock peaks and starts to pull back off the high (sign - look for volume going down) buy twice as many TECD April or May 25 PUTS to capture and retain your up profits until the next expiration date. Then you can sell the puts and cash out your stock if you want to or simply write more TECD covered calls.

Herm, why do we buy twice as many puts? I notice you do this
in all 3 strategies.

I have questions about the other 2 strategies, too, but
maybe I shouldn't ask so many things all at once!

Thanks again for all your help. This is a great thread
and tremendously helpful.

Ray
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News