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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: backman who wrote (11499)	9/7/1999 4:26:00 PM
From: jaytee	Respond to of 14162

David: Re/ your post. I don't claim to be an expert . . . I'm just learning from Herm and papertrading. But, I wanted to refer you to this post Message 2255794 And I hope that HERM will comment on these amazingly specific percentages this guy alludes to for 1) pct. of RETURN (8to 10%) this guy looks for 2) looks for his return by NEXT EXPIRATION 3) pct. he uses on MARGIN 4) likes strike prices ABOVE or AT THE MONEY 5) he says that WHEN he meets this criteria (and uses margin), and deducts the associated "costs"(figures 1 1/2% for commissions etc) he looks to make 15% a month. I'm not so much "taken aback" by the $$$$ . . . as I am amazed by his focus and SPECIFICITY. HIS POST 363 and 367 are enlightening strategies . . . if not clear examples of what you are talking about. jaytee

To: backman who wrote (11499)	9/7/1999 5:01:00 PM
From: jaytee	Respond to of 14162

David: SORRY. Here is a REPHRASING OF MY POST. (I "timed out" on my edit) I don't claim to be an expert . . . I'm just learning from HERM and papertrading. But, I wanted to refer you to this post Message 2255794 I still defer to HERM as being the BIG KAHUNA of CC'g. But, I was really interested in this "other guys" posts (elsewhere) re/ his experience/and technique. And I HOPE THAT HERM WILL COMMENT on these amazingly specific percentages that this guy looks for. HE WANTS (AS FOLLOWS) 1) A PREMIE to rise(OR already be) = to 8 to 10% of STOCK'S PRICE ) 2) looks for this premie to be for (an immediate) NEXT EXPIRATION date (uses fundamentals: ie:EARINGS OR NEWS TO JUSTIFY SHORT EXPIRY) 3) uses 50 to 75pct. MARGIN to leverage profits (example: reply#367) 4) likes strike prices AT or ABOVE what he paid for stock 5) he says that WHEN he meets this criteria (and uses margin), and AFTER he deducts the associated "costs"(figures 1 1/2% for transaction costs) he looks to make 15% A MONTH . Sure, I'M IMPRESSED by the $$$$ . . . but I am amazed by his focus and SPECIFICITY. He has his COSTS PRE FIGURED @ 1 1/2% He is SPECIFIC in what he wants for a PREMIE(8 TO 10% OF STOCK PRICE) HE KNOWS HIS EXIT(understands his risk/reward)And worse case scenario NOT OVERLY CONCERNED WITH DIVERSIFYING. just wants 2 to 3 good 'uns. WAITS FOR THE RIGHT "FISH"(stock)to come along.Doesn't HAVE TO trade HIS POST 363 and 367 are enlightening strategies . . . and, if nothing else, I think they're clear examples of WHAT YOU WERE ASKING FOR. hope this helps jaytee