How To Write Covered Calls - An Ongoing Real Case Study! Message Board

STOCKTALK

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 Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Dan Duchardt who wrote (10391)	4/15/1999 10:17:00 PM
From: David Wright	Read Replies (2) of 14162

Dan, Go back to post 1123 from hpeace. Steve has a neat stepped into strangle strategy that you might like. I have been using it to step into protective puts as the stock prices move up. I usually place orders for both the CC and the insurance put at the same time. As soon as I get some declines, I will start stepping into upside protection calls. It would be nice to be able to place those at, or near the covered call strike price. His criteria was to pay 1/8 to 5/8 for his stranglers. I have been keeping it at an average of 1/4, and am striking at, or just below my breakeven with puts that protect me through the earnings report dates. As these May puts expire (or I sell them), I will re-evaluate where to place my insurance protection, as I wait for my covered calls to play out. As Steve points out, sometimes you only get one leg in place, and it expires at no value, so it takes some discipline to follow this strategy.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next