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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: hpeace who wrote (866)	3/13/1997 11:18:00 PM
From: Robert Graham	of 14162

I understand that I have not traded options before. But we are not talking "rocket science" here. Why are you suggesting that what you term as "quality stock" would avoid the potential loss that I described? Not meaning to throw a rock you direction, but unless I misunderstood you here, this is what I call unrealistic thinking. I beleive you know better since it is obvious that you have dealt with options for a period of time. Now your statement about repairing you position makes sense to me. I can understand why you would need a pager, and so forth, to accomplish this, particularily on volitile stock. But doesn't this underline the risk involved? This possible situation that I previously outlined is a very real risk that has not been discussed before. I am hoping that you get more into discussing these repaair techniques of yours. Saying that the example I gave is not a valid option play when it can be valid for a stock on its uptrend and with a resistance point at 23 lets say, for example, is rather obtuse. Saying that my concerns about risk is "not valid" is rather surprising fom you, Steve, who is an experienced option writer. I have supported your statment of 5 out of 100 will be successful in option writing. For that matter Steve, where did you come from into this conversation with William about risk which was not a conversation about you option strategy? This is the part that surprises me the most. Saying that there is risk to covered option strategies does not need to be viewed by you as invalidating your option strategy. I am requesting that you consider this possability. Obviously I must of pushed your button too. If I did, I did this unknowlingly and apologize. Boy, I certainly know how to heat up a thread here! :)

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