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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: TimF who wrote (605)	5/16/2001 6:48:23 PM
From: Pat W.	of 5205

My question related to valuation. As you stated, a stock can go down enough so that you lose even after collecting the premiums, but then one could simply write more options, further reducing the cost basis of the stock. At the other end of the spectrum, a stock can go through the roof and leave you with "only" the option premium as a gain. The ideal would be to buy only stocks that go up to just under the exercise price (if I could do that consistently, I would retire now). I thought I had done that with my SEBL may 45s that I sold for 5$, but after today it looks like they may well get called. In any case, the cc

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