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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: P.Prazeres who wrote (40547)	6/10/1999 9:35:00 AM
From: Yogizuna	Respond to of 94695

Paulo, We disagree somewhat here. About the writing of calls trapping one into a losing position, I have not found that to be the case. If I want to get out of a losing position, I just buy back the calls cheaper, and in fact in the vast majority of cases, end up cutting the loss because I did write the calls. About forcing one out of winning positions, yes, sometimes that is true, but remember, if you wrote your calls properly, you are being forced out at a PROFIT! So, if one has stocks that are not going anywhere, or is a bit uncomfortable with stocks purchased low that have now gone high, writing calls is an excellent strategy in my opinion. I have built up a nice portfolio the last four years doing that much of the time, and have collected a lot of premiums. Yogi