INTEL TRADER 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.

Technology Stocks : INTEL TRADER

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: MonsieurGonzo who wrote (10735)	2/11/2002 10:50:42 AM
From: phillong69	Read Replies (1) of 11051

Fair enough. Of course, the downside volitility is just as large as the upside (actually, very possibly moreso). My (admittedly limited) experience with that kind of a strategy is that once in the money, the call value tracks the stock price fairly closely, when they fall out of the money they can decay fairly rapidly. So I'm not sure that the upside/downside leverage is equal with that strategy (as it is with a straight out stock purchase). I also know of no broker that will let you play hard core options games with retirement accounts. I'm just thrilled that Datek is going to start letting me write covered calls with the Roth. I've been happy writing covered calls in the trading account . Bought some RHAT on a lark at 3.50, was amazed that it got up to 5.30, wrote march calls there for 1, watched it go to 9 (shaking head), now watching it break support at 8 and go back to who knows where. At times, the calls have almost no time value left whereas I got about .70 when I wrote them. For the Roth, I'm looking to go long on something when there looks like a good EP. Maybe PEP or AA and write some calls on it when it looks like it tops out.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next