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

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

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To: JoAnn McCracken who wrote (6200)	12/19/1997 4:53:00 PM
From: Herm	Read Replies (2) of 14162

Hi JoAnn, Coming back for more profits are you? Hey, I say you never lose money when you take a profit! $1,100 + $187.50 =$1,287.50 or 21%+ ROI. What ever makes you happy and you sleep at night is ok! Keep an open mind to cover if VVUS price should stall around the $15 price level and gives you an opportunity to buy back your CCs. My feeling is you will be called out before March! You might even want to leverage right now by reinvesting the CC premies to buy another 100 shares on a dip. That way, if VVUS takes off (in late Feb./Mar.) you will have a even better return with the extra 100 VVUS shares. As you get closer to expiration you could write an in the money call for the VVUS 100 share freebie compliments of your CC buyer. Now, that should make you feel warm inside! Your decision is a very conservative approach to making money by CCing. Only you know your risk/reward criteria. Don't let others make that decision for you.

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