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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: FaultLine who wrote (1718)	8/1/2001 11:25:28 AM
From: Dr. Id	Read Replies (1) of 5205

Ken, Have you thought about selling some NTAP puts? It could add a bit of premium, and allow you to buy back in a little lower than the current price if called away on your Aug 10's. I've been selling puts for the last two months as the market was in doldrums. I've sold Aug 35's on Sebl (after taking a $1000 profit on the July 35's and rolling forward) for 4.30 (currently trading at 1.80) and Aug 20's on VTSS (after taking a $500 profit on the July 20's and rolling forward) for 3.40 (currently trading at .80). I do think it's the equivalent of a buy write without buying the stock, and is a nice strategy in a down market that lets you have "some action" without trying to sell calls at too low a strike. And, if the stock stays down, you're buying it at a lower price than the current one and hopefully it's a stock that you're wanting for the long term anyway. dDI

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