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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Tom K. who wrote (12094)12/23/1999 9:44:00 AM
From: Herm  Read Replies (4) of 14162
 
Hi Tom,

I'm interested in hearing about your approach to investing approach via PUTs. Correct me if I'm wrong, there does not seem to be much dialog on that aspect of the option spectrum. Yet, there are some golden opportunities we are not considering since the dialog on this forum is on covered calls. Yet, we all know that there are times when the PUTs action is the right place to be while we wait for the CC trigger points ala WINs.

After all, as a stock goes up and sideways, those PUTs buyers are losing their money. There is no shame in CCers making it from both ends! :-)

So, Tom! Answers to some hard info would be great. It would raise all of our knowledge leve and continue to add dimension to WINs. We want all folks to make money on this forum along with make new friends and have a good time. Others are welcome to add to the dialog and in the end I will try to summarize into somekind of knowledge base.

Example:

1. What do you normally use as your technical indicator(s) to determine a stock is bottomed out?

2. What type of stocks do you look for and where? Have any web sites we can check out?

3. How do you determine how many PUTs to sell. Are you naked or do you have cash to back up the PUTs?

4. Do you average down the stock if PUT to or do you go naked on PUTs in which you have no stake in the stock itself?

5. How often do they PUT it to you and why is that?

6. What kind of ROI do you experience on say a round of PUTs?

7. Can you describe the mechanics of what really happens when they PUT it to you! What does the brokerage do. In other words, how do you settle the exercised PUT.

We are really picking your brains and experience on this one! We may have to write another chapter in WINs for everybody.

Thanks Tom. Take your time!
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