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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 (9557)2/2/1999 8:21:00 PM
From: jebj  Read Replies (1) of 14162
 
>You need to average down Ray! Wait for that rebound and then sell CCs
as far out as you can and lock in the premies. It going to be a long
stretch before TECD recovers. Look for four to six months! - Herm

OK - what am I missing here?

I have seen you speak of "repair" and other plays on this thread when a stock tanks.

What I have not seen is any discussion as to IF the money would be better spent somewhere else during this time you are "repairing".

As in this example, why would you keep your money tied up in TECD for a long period of time JUST TRYING TO GET BACK TO EVEN rather than taking your licks and putting the money to work where it will show a profit?

You can always get back into TECD when you think it is ready for a move back up - assuming you really just MUST own this stock!

jb
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