The Covered Calls for Dummies Thread 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 : The Covered Calls for Dummies Thread

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: FaultLine who wrote (1)	4/19/2001 1:11:06 AM
From: Uncle Frank	Read Replies (3) of 5205

That's a great lead post for your new thread, Quaker. >> but probably the most interesting issue is how to unwind the many in-the-money cc's out there in the aftermath of the big, record volume, run-up today. I'm in the same position with my sebl and gmst covered calls, both of which are core positions I intend to maintain. Here's what I've been planning. I'll appreciate any constructive critiques. In my ira, I'll let the stock be called, purchase back all of some portion of the shares on Monday, and sell May cc's at higher strike. In my unsheltered account, I'll play a game of "chicken" with Mr. Market <gg>. I'll wait until Friday afternoon, when virtually all of the cost of the call is intrinsic value, and roll out an up to a level where I can break even on the transaction if possible. >> I have missed out on a goodly fraction of the run-up today because of these cc's but that is the bane of cc's isn't it? Not at all. The psychology of this game is always positive, since you never lose capital. uf

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next