Hi Neal,
Good question, you simply stay with quality and keep writing calls like you suggested until you have good reason to switch. The beauty is even if a stock like QCOM dropped to $85, Bobo's losses would be severe and Bebo's would only be about a third of that NOT COUNTING HIS PREMIUM, so it would be even less than a third of Bebo's loss because he was covered and he would still get something like $12,000 to $13,000 in call premium and remember, ORDINARY INCOME, no FICA, FUTA, SUTA or Med Care taxes. At some point you begin playing with the House's money because you will have gotten your stake back.
Those two dreams are easily handled. This is not fantasy folks, there are too many people on this thread that I know are now doing this.
Also one must remember, the alternative SUCKS, just ask Bebo who was playing the Casino and was not covered.
V |
