How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: FishbackJ who wrote (3044)	7/13/1997 7:12:00 PM
From: Herm	of 14162

Hey, who is to say that the market makers knew the short squeeze would happen and countered by dumping a few large blocks the VVUS stock shares they had a 50% runup already! Now, that would absorb or control the short squeeze. Then, the MM turn around and buy back the options at a discount before Friday! Of course, the other punch comes on Tuesday, Wednesday when the MMs buy a few LARGE blocks for bait and start the buying back up and you know they will exercise those calls at a pretty good profit! Very easy to do since the VVUS earning news could carry the price up to $40. And, they will jerk us around along the way! As covered call writers we must us that volatility to our advantage! Let the trend be our friend. I've said it before, Luke Skywalker, "let the force be with you!"

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