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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: TShirtPrinter who wrote (2614)	10/10/2001 11:54:23 AM
From: rydad	Read Replies (3) of 5205

Thank you for your cautions. I remember fondly that day when QCOM jumped 100+ points in a day. But that was in the midst of one of the greatest stock euphorias I have ever seen in my life. Unfortunately the market is in the dumps and I think I am willing to take a chance of writing the naked put and risk that for 7 more days QCOM will not rise to 70. After that I'll be covered again. Do you have an opinion of how I should play a stock when it is approaching earnings. I remember conversations back in the good old days when people would wait for a earnings run prior to announcing and then sell the stock prior to the announcement. Now it seems like the stock just drags along until earnings then a bad announcement would cause the stock to drop. If that was the case, I would sell my calls prior to the announcement. I am talking specifically about CSCO. I was thinking of selling CSCO Nov 17.5 for about .45. I figure it will drop after earnings and the premium will drop the weekend after the options expiration. So I want to buy it now while the premium is higher. Anyone else have an opinion? Love to hear from you all. Thanks

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