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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: rydad who wrote (3566)	3/25/2002 12:40:52 PM
From: Uncle Frank	Read Replies (1) of 5205

>> Are there any rules of thumb anyone can share about covering your call writes? My preference is to write an otm strike 6-8 weeks before expiry, and let the time premium evaporate. Once the premium drops to small change, I will close the position to lock in the profit. On an exception basis, if there is a sudden drop in the early days after writing an option, I may close it out with the intent of re-writing later. I outlined that approach in the following: Message 17129474 Note that the sebl apr35s I wrote on 2/27 for 2.40 are trading at .85 today, but since it's taken so long to happen, I'm not tempted to buy back yet. But wtfdik? duf

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