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: Herm who wrote (9498)	1/18/1999 9:49:00 PM
From: k.ramesh	Read Replies (1) of 14162

Lower strike Call etc... My concern is that this leads to eventual slippery slope of buying calls to juice up your profits, which is a far cry from the ultra-conservative strategy of selling CC's. The initial premise in writing CC's is that you pick a good Yo-Yo stock, that has high volatility and hence high premiums.When you calculate your returns, always the if called out return is higher than the expires return. The thing you wish for is to get called out. To hell with it, you know your Yo-Yo, it will come back down for you to buy again and write a CC when it inches up a bit from where you bought it. If it gets called out, wait and look for another candidate temporarily.Unless there are hefty costs to being called out that I do not know about. Just my 2c. Ramesh.

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