HiSpeed.
the reason I suggested selling covered calls, was because he indicated, it seemed to me, that he was holding these positions and had an inclination to continue holding them.
covered calls can generate nice premiums, and if you are just going to hold on anyway, you may as well be generating some income from your investments. with the volatility of the stocks mentioned, 10% return per month on covered calls is very reasonable to expect, and yes, it can limit your upside, but if you are selling out of the money calls on these shorts rallys, then you are still getting more than you would get by flat out selling out.
personally, I have never used a covered call strategy, because I have never had the patience, and usually when I have taken big losses in positions, I have just faced the music and started over.. No telling where the bottom is, and no telling when it may turn around
rok |
