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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: JohnM who wrote (1147)	6/21/2001 8:57:09 AM
From: James F. Hopkins	Read Replies (1) of 5205

John; One option you didn't mention was buying puts.., it may not apply to this case & I don't have the time to look. However there have been several times I wrote CCs and the stock went on up to where insurance got cheap via puts. I'm still holding CNC that I bought when it was cheap..at the time I sold CCs on it ( leaps ) I said to my self if it gets called I make a double & that's good enough for me. It turned up enough that buying back the calls didn't look good to me, so I just bought put's at the same call strike. The time premo went up on the calls but fell on the puts , so I was buying a cheaper time premo. As it is I now don't worry about CNC my profit is just a little less BUT it's locked in. ---------- I used the outlook when I wrote a covered call I do so at a strike I will be happy enough to get called out at, then I don't troble myself latter with the "well I could have made more" in fact I'll give up some of the profit if the put gets cheap enough. ------------- In short If there is a "spread" or if a spread shows up , it's write the high time premo and buy the cheap one. Jim

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