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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: harmonyss who wrote (4623)	11/24/2006 9:56:44 AM
From: Jerome	of 5205

Some clarification.....all of my holdings are on margin. Ratios... example...If for the month of Nov. my anticipated margin expense is $500.00...then I will write (generate) at least $1000 to $1500 in covered call premium. This month I generated $460.00 in margin interest and about %2500 in covered call premium. This month is not yet over so there is more to be dome. At the start of any option month (last Monday) I immediately write at least $500 in covered call positions. These are usually at the money calls. Then at the period progresses I more calls a little out of the money and in the last two weeks use the rest of my portfolio to write calls about two strikes out of the money for minimal amounts or I will go six weeks out and do what I think is reasonable. Its not rocket science, but I do start each day with the mantra, "Lets try not to do anything stupid today". (greedy is stupid, in my opinion ). Jerome

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