Short-termSelling Puts (Covered Calls by another name) Message Board

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Strategies & Market Trends : Short-termSelling Puts (Covered Calls by another name)

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From: Rocky9	2/3/2006 9:46:27 PM
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I started selling puts last fall, and have been pretty successful (or lucky) so far. I generally try to find puts about 5-6 from maturity that can return 5-10% of the monney that would be at risk if the stock is put to me. If I am wrong, and stock is put to me, I try to sell calls in month 2 so that I at least break even over the two months. I also sell short-term calls on some long term positions in order to get someone "income" from high-risk, fully-valued stocks, or to sell for a little more than the then-going price. These are my results for January: Wins: In regular account VPHM 17.50s at 1.30 ALKS 17.50s at 1.45 SFCC 15.00s at 1.50 CHS 45.00s (calls) at 1.30 In IRA SEPR 50.00s at 1.45 ALKS 17.50s at 1.30 SFCC 10.00s at .75 Also in regular account: Partial win: VPHM 20.00s (calls) at 1.50 - less .35 reduction in underlying stock Lossses: SEPR 55.00s at 3.80 - less $4.35 below strike MOGN 17.50s at 1.35 - less $1.48 below strike Total 47.126% of goal

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