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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: alanrs who wrote (1635)	7/28/2001 4:53:50 PM
From: RP Svoboda	Read Replies (3) of 5205

<<I know there are those out there who disagree with me about this, but I prefer to sell further OTM calls with more time in them, especially for a stock like QCOM that I really don't want to have called.>> alanrs, Please elaborate more on your strategy. If the rate of decay of the time value of the premium is related to the square root of the time remaining (Per Options as a Strategic Investment) then are you stating that you are focusing your trading on the volatility, underlying price fluctuations etc.? If so which one / ones do you focus on? QCOM reported as I expected. The infra sales made up for the other shortfalls while they are between product lines. Now I am going to try to write some Aug 75s against my leaps. I think if the market holds we could drift up to the high 60s early next week - at that time I will try to write for a minimum of 1.05: I need at least that much so that if the stock gets called I will cover my costs with commissions. After several writes I have a cost of 25.09 for my Jan 04 50s. My current strategy is to keep writing against them until they are called or I own them with zero cost. Boda

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