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Technology Stocks : Broadcom (BRCM) -- Ignore unavailable to you. Want to Upgrade?

To: Farfel who wrote (2141)	6/30/1999 7:47:00 PM
From: Patsy Collins	Read Replies (1) \| Respond to of 6531

Joe, If you can buy a stock at 126 and sell it the next day at 144 each and every day, of course; you would not want to write call options. But you won't be so lucky every time. In fact, if you knew that BRCM would jump 18 bucks today, you would have bought out of money calls on margin. The fact is, you or anyone else, do not know that the FED would do what they did. Even bond pros, guessed wrong today. Short-term EURO traders were slaughtered, losing 50 to 75bp in futures. That's $188K per 100 contracts, now that's a bad day! Not to be sidetracked, no one knows where a particular stock, or a certain sector will head on any given day. No stock goes up forever, look at the nets babies. But I can tell you that over the long haul, and ever since they traded listed options at the exchanges. 90% of the time, people make money writing covered calls. If you're afraid of leaving money on the table, just be patient and wait for the down days (they will come) to buy your calls back. Patsy

To: Farfel who wrote (2141)	6/30/1999 7:56:00 PM
From: Keith A Walker	Read Replies (1) \| Respond to of 6531

I agree with your analysis. The only time I would encourage covered calls is to just use them for a trading position, but, you can certainly miss out on the upside. I have indeed left money on the table using covered calls, selling calls too early, writing naked calls, etc. (By the way, writing naked calls on BRCM is not a very good idea.) Looking at trading in a little different way: if I take a position and double it, then reinvest the proceeds and double that, etc. etc., everyone knows this trick. I have learned never to look back at what I could have made, this is just too agonizing; sometimes, I look back at a loss and comfort myself that I got out before I lost even more - if I ever hit the peak or low, then I was plain-old lucky and enjoy the feeling. Just keep looking forward and embrace risk as an opportunity: On this thread, I apologize for preaching to the choir. Happy trading!

To: Farfel who wrote (2141)	6/30/1999 10:16:00 PM
From: Brian Malloy	Read Replies (1) \| Respond to of 6531

It can be a very good strategy if you employ it at the right time. Sometime in Aug-Sep the market will get whacked. I'll be watching in July and sell SEP covered calls in late July or early August. Collecting a nice fat premium. The probability of having the shares called away is low during the Sep expry, IMHO. There are just so many ways to both be long and squeeze extra money out of volatility of companies like BRCM and CMGI.