SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Jonathan Thomas who wrote (12308)2/3/2000 9:04:00 PM
From: Dan Duchardt  Read Replies (2) of 14162
 
Ryan,

I may regret it in the morning, but I closed my long AUG15 calls before that final push at the end of the day. After I had purchased them and a few others, my IRA custodian decided it was too risky to hold long calls because of the remote possibility of having them automatically exercised if I didn't sell them before expiration. To keep the position, I had to have the strike price in cash in the account, meaning I had to commit even more money than a CC would have cost me. I made 1_3/16 on a 1_11/16 investment, but of course had to keep 15 in reserve. If I can catch a good price I'll probably go long and write some calls myself. I'm not seeing any valid prices on the MAR15s right now. MAY17_1/2 @ 1_3/16 look decent, especially if ROST runs higher before you have to write them. Good chance of that, and of ROST being up there in May.

I covered some WCOM FEB50 on Monday when the stock ran on Monday, thinking I would roll out after about another 5. Jumped the gun on that one, so now I'm long WCOM uncovered with some regrets. Waiting for a serious rebound to write new calls.

And I'm in KM too, with 2002JAN10 calls that I bought a bit too soon. You could buy those now for 2_7/8, and I think that's a great deal for anyone who can write calls against LEAPS. With a little patience, I'll bet you will be able to write a 12_1/2 for at least 2_7/8, and eventually work to a net credit while holding the LEAPS that could easily be worth 10 to 20 before expiration. Maybe KM will catch the fever soon.

Dan
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News