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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: JGoren who wrote (105)	4/21/2001 12:36:36 PM
From: alanrs	Read Replies (1) of 5205

I tried to use the cboe site to calculate fair value for an option given the price of the stock and came up with option values much lower than I found in the real world. Haven't had time to re-visit, so it may have been some oversight on my part. Since not understanding the site has not kept me from making money on calls, I'm not in any particular hurry. Using the KISS principle, I find that selling a call at a price that would put a smile on my face if it were excercised, as others here have recommended, is completely sufficient. In fact, I think I've died and gone to heaven since I started doing this. There are many days when prices aren't attractive, or are so low I buy it all back. My buys and sells tend to be clustered around a three or four day period. Since I've only been doing this for 8 months and started slow, I'm going to give it a year or two to believe the results and gauge how I react. So far I'm ahead 21 trades to 0, with no stock being called away. I know it's not the high stakes gambling some do, but it works for me. ARS

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