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: Herman J. Matos who wrote (384)	3/3/1997 12:06:00 AM
From: Walter High	of 14162

Herman: I want to compliment you on your courage in demonstrating your strategy in real time. Books such as Wade Cook's only show successes in retrospect; we have no idea how often he may have failed. Doing this as an ongoing operation is really putting your money where your mouth is! I have reviewed your postings and actions to this point, and as I understand it, you have purchased two March 40 call options at 6 1/8. You are now waiting for the proper time to exercise those options and then put the covered call writing into effect. Your strategy seems to be working perfectly to this point, thus, the following question is merely academic, but could be relevant to those of us attempting to try this on other stocks. What would you have done if ROST had begun to decline in price after you bought the calls at 6 1/8? Suppose the stock had gone from 44 to 43 1/4, to 42 7/8, to 42 1/4, and to 41 1/2 over the past several days rather than rising to 48 as it has done. Tell us how you would have managed the situation if it had turned sour. Would you have bailed out on the options, selling them for what you could get? If so, at what point? Would you have rolled down on the options, trying to cut your loses, but staying with the overall strategy? I would appreciate your comments as I need to know how to deal with a failing strategy as well as a successful one. Thanks in advance. Walter High

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next