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: Qtrlytrades who wrote (1699)	4/16/1997 9:17:00 PM
From: Herm	of 14162

Hi David, David, what I'm thinking is "does it really matter?" What I mean David is that you have your call buyer's money in your account and the opportunity to make money on other PUTS and CALLS on the side with that money! Every time you successfully use that money to make more money you are lowering your net cost basis for that stock. That is the bottom line! Profit (more money out than you paid in). So what if you get called out! AS LONG AS YOU ARE MAKING THAT MONEY before the call out and your net cost basis is lower you are in a position to get back in the game! You know what I'm talking about by reading the information covered in this forum. It thrills me to get private email from people who are using the information in this forum and are MAKING MONEY with some fairly conservative risk/reward strategies. My ROST April 25s covered calls may or may not be called. All I need to worry about is cranking out profits to lower my net cost basis with ROST which is pennies away from $20.00. I really don't worry about a run a way stock price since I always have working capital from all the call premies I collect each and every month! I rather have the money in my account than hold my breath and hope that the stock price will increase. That's my call buyer's problem. In the meantime, I'm going to be doing my homework and working the PUTS and CALLS for extra bucks. Does that make sense? By all means, you should be aware of the option call out possibility and you should be more aware of extra profit opportunities. There are gold nuggets in those CALL hills and PUT valleys along the expiration trail!

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