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Non-Tech : The Critical Investing Workshop

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To: Jill who wrote (29156)8/16/2000 9:48:25 PM
From: freeus  Read Replies (1) of 35685
 
Hmmm.
So you would have, as some people do, "Core" portfolio and "non core " portfolio. On stocks that you are not willing to have called (obviously SSTI and CSCO were in that boat for me today) you just don't sell the cov calls? Or sell them quite far above the price?
On stocks that it's ok with you to have called (and maybe you'll buy them back or maybe you'll replace with Leaps as I'm doing with JDSU or maybe you'll just go on to something else if they get called) you write the cov call just above the price or at the price?
It would be nice to write the calls when the stock is "high"" I did that with NTAP: wrote them at 100 and then NTAP went down so I doubt those will be called.
But we don't always know what "high" is...until after the fact.
This is, however, a very interesting discussion.
Are there some stocks that selling cov calls does not bring in enough income to bother?
Freeus
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