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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: FaultLine who wrote (499)	5/10/2001 11:51:04 AM
From: Dr. Id	Read Replies (2) of 5205

Sold them for 2.50 eight days ago, bought them back this morning for .30 Wow. There must have been wild-eyed optimism when you sold them. I see from the chart there was a surge from 30 to around 38 over a 4 day period about two weeks ago and then sideways movement. Did you sell right at the end of that run up? I did sell right at the end of that run up. I've been watching it closely, and the volitility is pretty amazing. I've also noticed that analysts have been upgrading and then downgrading and then upgrading the semi stocks at least once or twice a week. It looked like it was on a roll -- were you prepared to let the stock be called? I was willing to let it be called, but I also felt that it had run up too fast and that there was a good chance that it would fall back (and I was right for a change!) Were you working with an existing position (I think yes)? Yes. I've held VTSS stock for years now. Did you have a favorable basis to work with? Yes. However, I'm in the position of not worrying too much about capital gains this year as I have so many losses to offset them! I know that you have followed VTSS for quite a while -- do you sense that you have a feel for the beast? I'm not saying you can predict day-to-day behavior, but that you have a sense of generally where it is going to be over the next few days of weeks and that you are right more often than not. I do sense a feel for it, which is scary and has gotten me into trouble. However, part of my feeling is that whatever gets called away this month will be able to be repurchased at or below the current price in the coming months. I have no idea when, but I just don't think that we've seen the last of the big corrections. I ask all this because 2.20 in eight days is very unusual in my book. I had thoughts of holding it until expiration, but am trying not to get too greedy. The same thoughts will prevent me from reselling those calls prior to the fed meeting next week. And, a 2.20 profit in 8 days isn't too shabby. I made some similar profits on GMST last month, but then got myself in trouble by reselling them at lower strikes. I'll either have to buy those back at expiration or let it get called away --fl@butofcoursedufdoesthisallthetime.com . Yeah, right. Dr.Id@learningaswegoalong.com

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