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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: bajasurf who wrote (11500)	9/8/1999 10:01:00 PM
From: George Cowsar	Respond to of 14162

You are right regarding high volatility and upper BB... You said: >> Its all well and good to say write premies when the top bollinger band is touched, but unless you are already in the stock, a buy/write when a stock is at that point is almost a sure loser. Right. You need to be in the stock already. The WINs strategy basically says buy the stock at or near the lower BB, and wait and sell an in the money call near the upper BB. Otherwise, like you said, you will probably lose. You could enter the position at the upper BB if you're impatient, but you probably won't make money, not yet anyway. I've found this out the hard way. BTW - Yes, I'm making money this round so far: I'm ahead about 5% in round 4. Now I just need to octuple my gains in round 4 to make up for round 2! My losses were not in the CC strategy, I was on the other side of the table buying calls in high volatility stocks... I'm finding that CANSLIM and CC strategies have been winners. So I'm trying a bit of both for now. Sometimes a CANSLIM stock in a basing period makes a good CC stock.

To: bajasurf who wrote (11500)	9/9/1999
From: Greg Higgins	Respond to of 14162

bajasurf writes: Is anyone on this thread actually making any money, as opposed to just reducing losses on high volatility stocks? Since you ask, yes; though I'm just a listener and not a WINS adherent. my experience has been that high premiums are priced that way for a reason. Precisely. What's needed is a concept of risk adjusted return, though I'm not sure how one would go about calculating that on a day by day basis, especially as it applies to short term investments. I'm a couple thousand miles from my library, but I suspect you could do something using a 30 day range number and calculating the probability of the underlying moving it's maximum range from some period in the past during the current period. (mumble,mumble,mumble....)

To: bajasurf who wrote (11500)	9/9/1999 10:29:00 PM
From: Tom K.	Read Replies (1) \| Respond to of 14162

Is anyone on this thread actually making any money.... Interesting question... yes I follow this thread (since the beginning), yes I make money with options, but no, not usually with CC's. My approach shifted long ago to writing PUTs which are a better fit with my style. I rarely contribute to the thread because this forum is devoted to CC's and Herm has done an excellent job of maintaining the interest, the participation, and the focus. It would seem unfair to use this forum to expound on a different approach. I find this thread valuable to follow and find the contributors to be of high quality and sincere. Only takes a few minutes to keep up on the posts and there is frequently a nugget in someone's question or response. Tom