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

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To: Herm who wrote (8544)	9/13/1998 3:51:00 PM
From: B. J. Barron	Read Replies (1) of 14162

Herm...thanks for posting the question re dogs. Other than reply to messages was not sure how to post directly to you..lurking sometimes has it limits...when you selected GT you must have ability to read my mind...it is the one Dog that has truly been a dog for me...just to clarify what a DOW DOG is...they = the 10 dow stocks with the highest dividend yield, ie they are the "10" most out of favor dow stocks. This is a value strategy approach and if you check it out over the past 20 to 25 years these "dogs" have out performed the dow as a whole total return wise. It is simple strategy that requires about one hour per year and one WSJ to check the dividend yeilds when you rebalance the portfolio. I agree that it is somewhat boring compared to playing low priced otc stocks but for the old folks at home type it turtles along quiet well. When i began to read your site info it turn on a light...why not add covered call writing to the already exiting dow dogs strategy. in the past more books gave a much poorer explanation of CCing and none i have seen dealt with the problems you have so nicely covered in WINS. Now back to GT, it was added in july 97 and didnot make the cut in july 98... since i had been reading your site for several month and GT was at lost i began your repair approach writing 4 cc gtjn 70calls and covered them 8/11..this reduced my nut from 63.44 to 61.56..im not sure my broker will allow me to write cc on GT 40 jan00 leaps but i can average down by adding more shares and doing same...i like your ideas on the puts...will check all this out tomorrow...again thanks for your input and suggestions...I needed that...the current dogs as July 15th when i did my yearly screening were: XON,CHV,IP,GM,MMM,CAT,DD,MO,T,& JPM..thanks for your help...B J

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