How To Write Covered Calls - An Ongoing Real Case Study! Message Board

STOCKTALK

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 Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: jjs_ynot who wrote (12892)	6/4/2000 2:30:00 PM
From: Casaubon	Read Replies (2) of 14162

For the most part, I have found that stocks which run contrary to my entry point should probably be sold rather quickly rather than entering a long drawn out repair strategy. JMO. So, my contribution to the thread you are thinking would be: If a stock moves against you fairly quickly, you probably timed the entry poorly and should accept the defeat, take the loss, and consider another stock until the time is right for your original selection. I don't mean to say that I time everything perfectly, I certainly do not. I just think it might be more beneficial to take the loss and find a better investment vehicle. A recent example where this happened to me was in CTAL. I was wrong on my entry, took the loss and moved on. This is especially true in stocks which have a thinly traded options market becuase the spread will eat up most of your profit anyway. The best way to maximize your profits in a call writing stategy is to be called out everytime you do the write.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next