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: FR1 who wrote (9303)	12/28/1998 11:11:00 AM
From: Herm	Read Replies (2) of 14162

Hey Franz! How about this! It is always wise to take money off the table. At least, half of the positions which should more than cover your net cost (nut) basis and some profit. Also, it would take care of the margin house calls. The remaining internet stocks in your portfolio could then generate and provide some heavy CC premies to buy protective puts like Vigil suggested. In summary, your CCs dollars are buying your downside insurance (hedge) which could in all likelyhood turn into a positive gain if the internet stock price plung is fast, deep, and sustained.

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