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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: Herm who wrote (11248)	7/20/1999 9:41:00 AM
From: Benchman	Read Replies (1) \| Respond to of 14162

THANKS!! That was what I was hoping for. I wrote covered calls on ESV at 10, 12.5, 15, 17.5, each time buying back the calls at a loss. I did real well with the overall trade, but I was worried I wouldn't be able to count the losses from the options on my taxes. But from what you've said, since they all had different strike prices and/or months, I can. BTW, I also bought and wrote calls on IFMX this year :-) Thanks again, B

To: Herm who wrote (11248)	7/20/1999 11:13:00 AM
From: tuck	Read Replies (2) \| Respond to of 14162

Herm, Getting puzzled and frustrated here. On Thursday, I recently saw Edify's RSI and stochastics at tops, and it started to drop away from the upper BB. So I wrote Aug 12.5 calls when the stock was at 13 1/2 and bought some sideshow puts as well. The calls went for 2 1/4, the puts cost me 1 3/8. As far as the stock price is concerned, my timing was near perfect, for a change. This morning it is a little below 12. The calls are at 1, which is fine. But the @#&$% puts are now at a bid 1 7/16s! Almost a two point drop in the stock and only 3/16s movement on the puts! The delta was supposed to be -.45. The puts seem to trade 0 to 20 contracts per day(maybe two or three zero volume days per week), and the OI is 171. I'm going to be lucky to break even on this sideshow, because I think Edify is nearing a short term bottom. What gives here? I realize puts lose TP quickly when they get ITM, but this is ludicrous! Only three days have passed and we're weeks from expiration. At this rate, I am never going to do a short sideshow again. Does this stuff happen to you? Or did I buy the wrong puts? Cheers (I guess), Tuck