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Strategies & Market Trends : The Covered Calls for Dummies Thread
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To: Carl Worth who wrote (4736)2/21/2007 7:23:08 AM
From: Jerome  Read Replies (1) of 5205
 
>>>i certainly don't write them on stocks i think are going down<<<

Here is where we differ.... Many stocks are in a well defined trading range. So the object is to write the covered call near the top of the trading range, hope for a pull back of a point or two and then reuse the stock next month.

Right now, CSCO, HAL, CHK, STX, INTC all seem to fit that pattern. They are all good cc writes and if I got called out I would just have more funds to work with.

Keep in mind that if you got called out every single month on every single covered call....then every month you would have more money to work with. This is not a neutral viewpoint. And that is as bullish as it gets. In a few years your would have your own book fans, and book signing parties, and you would be rubbing elbows with Warren B.

JMO....Jerome
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