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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!
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To: NateC who wrote (12237)1/24/2000 8:20:00 AM
From: Herm  Read Replies (1) of 14162
 
Hi Nate!

Just a few comments about SCH and your position. First, I
tried to look up SCH in the FTSE in the United Kingdom and
the symbol does not jive. So, either it does not trade there
or perhaps under a different name or symbol. You can look
it up and watch their market my brokerage at dljdirect.co.uk

Second, I noticed you sold (wrote) an aggressive spread
using your long LEAP at a strike price below your LEAP
strike price. Thus, putting yourself at a fine edge of
being called unless you expected a considerable drop in
SCH. In other words, you sold pretty deep in the money CCs
(spread)???? That is one of the reasons I tend to only sell
two or three months out. It gives me much more time to use
the bigger CC premies to either hedge or leverage using the
sideshow options. If your position is all cash and no margin
to worry about, you can really keep a cool head and use the
CC premies and margin if necessary to do a nice job in
damage control or profit scalping.

If SCH drops on open you should be ok! Shorting can be fun!
The weekly profile of this chart with the upper and lower
BBs narrowing indicates pending gap being set up. With the
Nasdaq hitting a new high and the VIX heading down and the
Fed meeting coming up next month, I would say SCH might get
sucked downward with the minor profit taking correction.

iqc.com

Thanks for sharing that info. You just opened my eyes to the
fact of the after-hours trading influence on WINs! I will
have to write that into the books as well.....
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