SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: stockid who wrote (9053)11/16/1998 8:12:00 AM
From: Herm  Read Replies (6) of 14162
 
Hi SK,

While Scott prepares to answer your question allow me (as a learning
experience) to interact with you.

Take a look at GLM chart below. GLM is heading towards that $10 mark.
The company has a 18.96% growth rate and a P/E of only 8.8. WOW! A
bargain nowadays! Worth holding on to GLM as a CC workhorse.

NYSE: (GLM : $11 13/16) $2,034 million Market Cap at November 13,
1998 Trades at a 11% Discount PE Multiple of 8.8 X, vs. the 9.8 X
average multiple at which the Drilling & Marine Supply SubIndustry is
priced.

askresearch.com

So, you want to write GLM PUTs to grab the premies or do you want to
BUY GLM PUTs to ride it down? Either would work. If you write PUTs you
may consider the APR. 10s to grab big premies. You can always cover
later to your advantage if GLM gaps upward. You could use the premies
to then buy long calls as a sideshow.

Otherwise, I would rather CC GLM deep into the money a few months out
in order to grab the premies on the downstroke price cycle, CCing the
April 10s @ 3 1/4 rings my bell! As the price drops you may be able
to cover around 2 3/4s to 2 7/8s when GLM bottoms. This IRAN issue may
keep GLM up in the long run. There is always a chance of another oil
scare if a US strike becomes reality.

Our forum friend Vigil is most likely with his submarine mates in
that region as we speak.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News