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: Joe Waynick who wrote (8378)	8/30/1998 4:41:00 PM
From: B. J. Barron	Read Replies (1) of 14162

hi joe...i have used dow dogs strategy for 4 yrs and began my 5 th yr this july...i screen for the 10 top div ylds and buy the 7 stk that have the lowest price...this is a modification of what is usually done and is even more value oriented...the totl return has out done dow 30 for 3 out of 4 yrs and the one year it was only lower about 3 % was 96 and i cant complain considering the return that yr. there are lots of studies going back 20 yrs that seem to show it has worked in the past..must remeber that the future is not always the past...yet it is very simple approach...i began writng cc's in july after i completed my yrly update...i decided to increase the number of stocks to 8-10 to have more for ccing. at present have:chv, xon, ip, gm, t, cat, dd, gt, mmm,& mo... gt was supposed to be sold in july but was down so i have been following one of Herms repair approaches before selling later this yr...looks like Herm did not see my question in the response to T B so probably need to send it directly...since these stock are freq laggards they dont often make it to top bb as often has the stks herm talks about...therefore i am working on a different critera of when to write cc s...usually do it when the price has rally a few days and the call premiums move up...have mainly stayed near @ the money or just in the money and usually one month out...these freq will fall with any down turn giving good opport to cover at 20% or less...I was able to write twice on dd in one month and on last time get 2.5 for only 17 days...it expired wortheless... bj

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