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Strategies & Market Trends : Options
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To: edamo who wrote (7346)5/4/2000 3:28:00 PM
From: Seldom_Blue  Read Replies (2) of 8096
 
Good points Ed.

I have decided on a course of writing CCs for the time being. I have long term core holdings that I will not sell. I am slowly converting my options into commons or LEAPs. On these stocks or the options with little time value, I am writing CCs for about 10 or 20% above current market price for one or two months. My thinking is: If the stock goes pass the strike, I have made 10 or 20% in a month. I will buy back the calls at expiration and resell at higher strike. If the calls expire worthless, at least I have made 3-4%. I will stop doing this when the market is ready for a sustained upward movement.

I think this should be a good strategy for this type of market. Any comments?

Seldom Blue
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