HISTORY OF PROFITS WITH COVERED CALLS 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 : HISTORY OF PROFITS WITH COVERED CALLS

Public Reply Prvt Reply Mark as Last Read File

Next 10PreviousNext

To: ROB who wrote ()	11/15/1997 2:23:00 PM
From: Shanstar	Read Replies (1) of 11

I too have only been writing cover calls for a few months, but I have had some good plays. My first call was on WAVO, I bought in the money by more than a dollar but was able to get a $2 3/4 premium (for 2 months out). It expires next week. If I'm called, I'll have myself a 15.9% return after commissions. Theres still a chance I won't get called out due to the recent market correction. If I don't, I'll have myself over a 38% return. I also wrote a covered call in October that generated a 17.8% return in only two weeks. That call was on ADAX. I pick my stocks from a resource I subscribe to called Power Options. It's at poweropt.com . You can sort the criteria you want. It filters all the options available and returns you with what you are looking for. It gives the ticker, the stock price, the option premium (bid), the volume from the previous day, the open interst, and what I like the best, it gives you your return called and not called. If you buy on margin, as I do, you can take the returns and double them. I have also read Wade Cook's book called "Wall Street Money Machine". I really liked it. Two books I want to read is "Getting Started in Options" (can't remember the auther) and "McMillan on Options". Something that Wade Cook teaches is a simple two rule formula: 1)Know your exit before you enter and 2)Don't get greedy. He also teachs to only go out 1 month max for a covered call. I ignored that rule on my first covered call and still did pretty good but I don't plan to do it any more (unless I have to). You may make a little less of a return but it is a monthly return and monthly compounding of profits is better than bi-monthly compounding of profits. Hope you do well in covered call writing. Hope I was of some help. Shanstar

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Next 10PreviousNext