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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?


To: Art Bechhoefer who wrote (6630)8/15/1999 10:33:00 PM
From: rll  Read Replies (2) | Respond to of 60323
 
Art,

Another risk with selling covered calls far in advance, is if the stock tanks, then you are stuck holding it until expiration. I had tried this approach in my IRA account a few years ago and was not very successful with it. It's especially difficult with the high volatility of technology stocks.

"But if the stock falters and stays below 90, the calls eventually expire worthless and the transaction is relatively profitable."

rll