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Technology Stocks : Cymer (CYMI)
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To: Steve Wood who wrote (17466)5/13/1998 9:35:00 AM
From: Zeev Hed  Read Replies (3) of 25960
 
Steve most people on this thread hold the stock through fire and deluge. In this case, writing out of the money (or close in the money calls) simply reduces the profits (in case of a rise) and the losses in case of a decline. But hen you do it consistently, and when called away simply reestablish your position, you will on average make the time premium money on the stock. If you want to be a little more subtle, you buy a stock near the bottom of a trading range and sell the call after a point or two rise. But this requires timing expertise, which, I agree with Curly, no one can do consistently. That is why a covered call writer should do it consistently.

Zeev
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