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: Herm who wrote (6659)	2/5/1998 9:58:00 PM
From: 4 - Bob	Read Replies (2) of 14162

I placed a limit order several days ago to write 6 April 15 calls on HMTT for 5/8. HMTT has ranged between 10-1/2 to 11-1/2 during this period of time. The bid would not rise above 1/2. So on Wednesday, with the bid = 1/2 x ask=3/4 most of the day, I changed my limit order to a market order. At the time of the order change (2:25pm), the bid=1/2, ask=3/4, volume=0, and last price=5/16. The order was immediately filled at 5/16. I was surprised that it was not filled at the current bid=1/2. I have sold/wrote many calls and the only time I have not gotton the bid on a market order sell/write was in a fast moving stock, not on one that was sitting still like a duck. When is the last price (from the day before) used instead of the current bid. By the way, I have done quite well on VVUS in the $10-$12 range. But now I am reluctant to write cc on VVUS at this time with so much possible near term potential to the upside. INTC has gotten away from me and I will allow myself to be called out for a nice profit if it doesn't pull back soon. Again thanks for all the great input from you and others. Live Long & Prosper, 4-Bob

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