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: Bill Kovalick who wrote (4226)	8/30/1997 10:53:00 AM
From: Mark	of 14162

Steve and Bill, "do I buy back my AMD's now for $2 [paid $4], or wait a little longer for further premium erosion" I've got to go with Steve on this one; if you can walk away with a 2 point profit, take it and be happy. Holding out for more is asking for trouble... "Steve's comments about buying the cheap upstrike calls is probably the best solution" Yes and no. In theory I am in complete agreement. But the problem lies in being a small cap guy with small amounts of shares, but still having full service commissions. Why full service? My rationale is the following: I'm a relative beginner in the market, and I figure I could use some hand holding and question answering until I'm confident enough to move on to a discount brokerage. So lets step through this. If I need to exercise my upstrike calls, then the following commissions ensue: 1) Commission when I buy cheap upstrike calls 2) Commission when I get called out at 37.5 3) Commission when I exercise the upstrike calls It does add up! -Mark 2) Commission

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