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

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Herm who wrote (5091)	9/30/1997 10:54:00 AM
From: jim clabaugh	of 14162

herm, please help me understand. > When it apprears that the price is going to the moon, write those > CCs AT THE MONEY one month out and lock in the profit for the pull > back profit taking! Had we all done that, we would be sitting nice > right now at a much lower cover price and ready for the earnings > report. this seems you are saying earlier in sept, we should have written oct30c as it was going thru 30. at the time it went thru 30, that was near it's top BB for the past while and was consider 'going to the moon'. it also appears you are saying we should be sitting around 30 covered when the earnings is announced. do you expect a negative surprise? > BY THE WAY! VVUS earnings report is set for OCT. 8, 1997 after > the close of the bell! That's next Wednesday! Today's Fed meeting > should ignite the overall market and set the stage for VVUS blowout > earnings report. Keep an eye on the open interest position being > staged. The 10 day RSI for VVUS increased yesterday. The price drop > resistance yesterday was encouraging. If you are holding CCs, you > might want to cover soon and wait for the bounce back up. Get ready > to pickup some protective PUTs for insurance next week! now this seems you are saying the opposite - that earnings for VVUS will be extremely positive and that we should cover now and wait, but buy puts just in case. i'm confused. please explain. i'm sitting on oct30cc. it seems the first paragraph says "take your profits" and the second paragraph says, "cover, and wait for a big increase to write the next round." cheers, jim

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next