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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 169.71+1.0%12:16 PM EST
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To: 100cfm who wrote (49840)11/14/1999 1:39:00 PM
From: MileHigh  Read Replies (1) of 152472
 
100,

isn't there an optimum ratio to the number of calls you should sell vs. the number of shares you own.

Again, depends on your goals. You can execute a scaled CC approach. Say you have 1,000 shares. Sell 3 400's, 3 420's, 4 440's (They will be offered soon <gg>)

Your average strike price is higher than just selling 10 400's (avg strike price 422) but your premiums may be a bit lower than just selling 10 400's. But you may not get called on the 420's or 440's. This strategy would be used if you are trying to capture premiums while not looking to agressively exit/sell your core position.

Again, as McMillan states, "NEVER sell calls against stock you own unless you are willing and happy to be called away based upon the Total Return concept"

RE taxes, not sure about the tax free thing, not a CPA and not thinking that hard yet! <gg>

Regards,

MileHigh
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