Michael : "If you want to be more equity-like, use deep in
the moneys, which are still a lot cheaper and less risky than trading the stock.", I agree in general, but because there is very little "time premium" in the deep in the money, you must be a "timer" of the stock action, no longer just a seller (buyer?) of "time". I often use deep in the money with covered calls, but on stocks that have advanced to the top of their "trading range" and generally in a stock I will hold longer, just to milk some "fluctuations" premiums. I would not dare doing a such a covered call on MU, since I still think that despite some short term "up channels" the main direction is still Down, down, down, like in a submarine, and I would not dare holding it for any length of time, whatever the call premium (G).
Zeev |
