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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Bruce Ravelson who wrote (11102)	6/27/1999 10:27:00 PM
From: stockycd	Read Replies (1) \| Respond to of 14162

Bruce, First, let me give you my ideas on CC writing. 1. I only write CC on stocks that I will keep through hell or high water. In other words, we could be at Oct. 1987 again and I would sell it. 2. I write CC not to generate income, but to get my cost basis to zero and below. 3. I write CC at stock peaks but will roll up to a higher strike if I think another peak is achieved. 4. I believe that technical analysis is a must when trading anything. So TA is what I spend 90% of my time on. I am constantly revising and fine tuning my trading systems. Now, having said that, when writing a CC, you must be willing to assume the downside risk associated with holding any security. A CC will limit your losses, but if the stock goes to zero, that's still not good. Herm's WINS approach is very good if you do not have your own system. Below are some links that have helped me understand the WINS system. (BTW, I don't use the WINS system but it is very good!) Message 9121424 Message 9123093 Message 9505319 Message 9537944 Hope this helps. Chris