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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: BDR who wrote (535)5/12/2001 6:07:28 PM
From: rocklobster   of 5205
 
Dale,

thanks for the links. very interesting info. I am looking forward to participating on this thread, and would be willing to post my choices and results in the interest of helping others. My strategy is going to be to pick four or five stocks which I believe to be fundamentally sound. I will then begin writing front month calls with the intention of generating 8% compounded return per month. I'm not planning on using any margin, although I may use margin for very short term opportunities. I have toyed with the idea of using the call premiums to immediately buy more stock and writing calls on that stock as well, but it seems from my reading to be prudent to have some cash reserve in case of a too good to miss opportunity to close out the original call sales.

I am excited about the strategy, and look forward to participating here.

rok
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