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: pz who wrote (9574)	2/3/1999 5:09:00 PM
From: Herm	Read Replies (2) of 14162

Hi Paul, I don't feel comfortable suggesting CCing MSFT in an IRA as your first attempt for three reasons. First, MSFT is not cheap at this point! You would be carrying a big nut with MSFT. Second, you may not be able to buy PUTs in your IRA account. Very few do! I have only heard of one such account at a brokerage firm. Third, you need some practice first and you need extra cash for reserves to average down at the right point. iqc.com There are more conservative plays with more income potential. Check like S or GT. Both pay dividends on top of getting income from CCs. I rather see you have multi-contracts per CC round. When we did the first ROST CC and split play, ROST was selling way under value and was paying a dividend to boot before the split! ROST turned out to be an easy 100% ROI in about 11 months! MSFT will have to pull some big aces out of the hat to match that kind of profit. The court trials are still going on trying to hang Bill Gates. Who knows what will happen! Y2K is also an unknown factor in the computer biz!

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