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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Seyda who wrote (8037)8/2/1998 5:45:00 PM
From: Herm  Read Replies (1) of 14162
 
Good Question Seyda,

Certainly, the SMOD Oct. 15s @ 1/2 would have a higher delta and would potentially be in the money much sooner than the 12 1/2 resulting in a bigger and faster pay off.

It is a balancing question of risk/reward, comfort level, and cash flow reserves. I'm waiting for the BTGC BB and RSI bottoming in this cycle to average down. That will take the major portion of my idle $ free dollars in my portfolio. I can afford to lose $250 plus commissions. I'm not willing to fork over $500 plus at this time. Slow and steady wins the race! I'm getting more conservative as I learn from my mistakes.
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