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: Jonathan Thomas who wrote (1696)	4/16/1997 9:39:00 PM
From: Herm	of 14162

Hey Ryan, Working with 1000-2000 share is real nice when it comes to monthly premies. The commission cost is really reduced to the bare minimum giving you more working capital each month. Although, it does take a strong stomach to watch the swings in portfolio value. For example, a $3.00 move up or down on a $10 stock is 30%. With 1000 shares that is $3*1000 = $3,000 price movements perhaps during the month. The premies may average 7/8 to 1 1/8 or $875 to $1,125 which is not hard to take. You get use to it after a while. I'm at a point where $3,000 price movements up and down weekly in my account are the norm. I just bring out my option tool box to crank out the profits using options.

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