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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: LindyBill who wrote (1975)	8/13/2001 10:00:43 PM
From: Uncle Frank	Read Replies (2) of 5205

>> in and out of the CC's, you might make some money on almost a "day trader" basis. "Swing trader" might be a better description, Bill. Day traders generally make multiple trades every day, and close out their positions nightly. It's reported that they also generally lose their capital over the long term. I'd describe Andrew and myself as opportunistic covered call writers. While my basic approach is to depend on declining time premium over the course of the contracts, if I should see most of the premium disappear in the first weeks of a contract, I'll close them out with the hope of being able to resell them on a recovery of the underlying. I missed a nice chance on the qcom sept70s last Thursday. I had sold them for 4.30 only a week earlier, and could have bought them back on a dip at 2.00. It would have been sweet to be able to resell them for 3.50 today, but though I blew it, I still feel comfortable holding the position. duf

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