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: Tom K. who wrote (7662)	6/17/1998 8:05:00 AM
From: Herm	Read Replies (2) of 14162

Hi Tom, Over the past year on this forum we have fined tuned CCing. We have developed a "tool shed" of strategies to maximize the conservative investment technique known as covered call writing. It was Steve who first mentioned his success with buying PUTs before earnings release dates, splits, and price peaks such as new 52-week highs. Reason? Downside protection at the very least and big profits if you load up and the stock tanks. On the flip side, those people who write that CCing in a bull market will short change your capital appreciation potential may be outdated old time traders who are inexperienced CCing in the 90s! After all, only 3% at best hold a license in options trading. It was like my ex father-in-law who had $80,000 in bonds earning 4% and thought he was doing pretty good. Surely, I'm not suggesting rolling the dice with his life earnings. He could do much better! We have provided the recovery option spreads which far out pace straight stock ownership and CCing profits. My answer to the CCs in the money that run away; DON'T COVER TO BUY BACK, INSTEAD CREATE A SPREAD! You can use Doug's web site for free! webbindustries.com

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