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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: FaultLine who started this subject7/4/2001 6:56:25 PM
From: lucifer  Read Replies (1) of 5205
 
CC strategy for Siebel.

Hi Listers,
Having followed siebel for a long time (a considerable portion of my net worth is in siebel stock), I have observed that sebl typically has a pronounced upward movement in the weeks preceding earnings and then sells off immediately afterwards. Last qtr was an exception due to the expectations of an earnings miss.
If one believes in this, a good cc buy/write strategy could be to buy the stock a few weeks before earnings, enjoy the ride up and then write front month ITM calls within a day or two of the earnings announcements.
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