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: ROB who wrote (6240)	12/29/1997 4:43:00 PM
From: Herm	Read Replies (3) of 14162

Over the course of the last three years I have studied and applied several stock trading techniques. Some techniques require a great deal of time during the market hours in order to capture those trading opportunities. That was not for me in the long run. Buy and hold was the other extreme which was much too conservative for me! Buying the right stock with good fundamentals, watching for strong technical indicators and applying news events was the path I took for myself. Of course, the workhorse for the whole thing was the stream of income from the CC premies. I figured! Man, what a sweet deal if I can get 6% to 8% premies on a fairly regular basis ON TOP of capital appreciation in the stock price. So, here I am! I would have to agree with your estimate of 50% to 75% per year as a norm when it comes to CCing in a bull market. Even if you really screw up and get called out, cover and eat some stock price reversals you still may sneak out 30% per year. At times, I have been able to triple my working capital in a fraction of a year. It all depends on how aggressive you are. Hey, some more conservative types have even beaten me this year! That's ok and I'm glad for them! The stock markets gives and takes thousand of people's money! I'm fortunate that I was able to extract out a large sum this past year and put in my pocket before I got my ears pinned back by the VVUS dump. What can I say other than I will survive to get back my piece of the economic pie. I have made it and loss it only to get it back again. But, I becoming wiser every year. I have learned alot from our fellow forum readers. I sure don't claim to know it all! I'm learning to grab more premies and retain more the hard way I guess.

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