The Covered Calls for Dummies Thread Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Covered Calls for Dummies Thread

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Road Walker who wrote (2500)	9/25/2001 1:58:52 PM
From: JohnM	Read Replies (3) of 5205

Sold some covered calls on SEBL and EMC this morning, probably early... Interesting move, John. Would you care to share your reasoning? I would love to start doing the same thing but am very hesitant. Would love to hear some counter arguments. My own position, at least at the moment, is to be wary of a buying frenzy before another drop back to these levels if not lower. I've been nibbling in case my prediction of another leg down turns out to be wrong. But I'm reluctant to write calls for fear of the buying frenzy. The second reason I'm reluctant is the low premiums if one writes far enough out to have some small protection against the buying. I looked over premiums last Sunday night (Monday's trading may well change that) and only BRCD had premiums far enough out to merit the risk involved. And BRCD was one of the stocks which I was worried most about a buying frenzy. The third reason is I'm trying to see more markers of trading ranges. This last reason looks as if it will push me to wait several months to go back into cc writing (just as I felt I was beginning to understand it, if ever so little). So, if you have a reason to jump back in earlier, I would love to hear it. John

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next