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Strategies & Market Trends : The Covered Calls for Dummies Thread
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To: holland who wrote (2391)9/10/2001 11:30:46 PM
From: BDR  Read Replies (1) of 5205
 
Knighty Tin is perhaps addressing his comments to you and not me. If he did then he must have taken your question seriously. I assumed you were being sarcastic about paper losses. I don't expect any stocks that I am long to go to zero. Fortunately, the only stocks that I have been involved with that have approached zero have been ones that I have shorted (e.g. VVUS, ZITL, CCSI, BDE, RACE, SACM WEBB).

Options have expiration dates. Stocks don't. Therefore I will try to bank profits on options when I have them but I am willing to hold stocks through what I hope is a temporary drop in price. Time is on the side of a holder of stock in a quality company and the enemy of someone with an option position, although the option writer holds a relative advantage over the buyer.

QCOM is down lately creating a paper loss in the short term when the first comment about losses on QCOM were made. But today it is up some. I don't keep a record of the day to day or week to week gains and losses that I have on paper as the stock makes its runs between 45 and 70. But I do keep track of my option positions, sometimes daily. And the real gains from options are represented by the growing cash balance in my brokerage account. QCOM's price is almost irrelevant to me over the short term, except that when I see it is increasing I like to sell calls and when it is falling I like to buy them back.
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