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: tuck who wrote (10728)	5/11/1999 2:09:00 PM
From: Jonathan Thomas	Read Replies (1) of 14162

Tuck, I bought those puts because I didn't want to pay much more than a 1/4 if I could help it, up to 1/2 if the position was good. I'm bullish on NOVL, so my plan is to hold them as protection if the stock tanks. BUT, I will sell them at a profit (and buy back my calls if they depreciate to under a 1.00) on a dip IF, and ONLY IF the chart looks like it will reverse. In other words, I'll sell the puts and buy back the calls, preparing to run the whole process all over again on a DIP but not on a TANK. If the stock tanks, I'll let the calls expire, and sell the puts when it finally bounces. This should still keep my nut below the current price of the stock, and I can continue CCing without missing a beat. I'll have more cash in the account, and still have 700 NOVL shares to play with. I bought 7 contracts to keep pace with the number of shares I own. So far so good. The stock has performed perfectly for me, lets hope it continues...I'll take a look at EDFY, what is your current position in it? Ryan

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next