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Non-Tech : The Critical Investing Workshop

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To: RocketMan who wrote (3629)	2/13/2000 10:51:00 PM
From: Dr. David Gleitman	Read Replies (1) of 35685

Hi Rocketman: If you sell covered calls and you are in the money/reached the strike price by options expiration, you will be taken out and will be notified over the weekend simply by looking at your buy/sell orders on your computer over the weekend. It will usually show up late Saturday or Sunday.I know that with Schwab, I never receive a telephone call. I just see it in the executed trades screen. With stocks like qcom, if you want to keep your position, it's a little dangerous to sell cc way out several months. I have found that with stocks with a high beta may yield a greateer premium when you sell calls, but there's a reason for it and it will usually bite you in the ass (butt). I've had situations where certain stocks rode up substanitally, but I was sitting kicking myself for selling myself short (so to speak) trying to make an extra few buck selling calls several weeks (months) when I could have made much more money when the stock was appreciating to a much greater extent. It's like selling your soul to the devil. Stocks like qcom, especially when depressed are dangerous to sell short. Been there, done that... Best of luck. David If you have any questions, feel free to ask.

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