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Strategies & Market Trends : TATRADER GIZZARD STUDY--Stocks 12.00 or Less..... -- Ignore unavailable to you. Want to Upgrade?

To: TATRADER who wrote (11061)	9/9/1999 7:50:00 AM
From: dealmakr	Respond to of 59879

Mark, Sometimes writing a covered call option on a stock held in a position trading account may allow you to reduce your cost of entry by capturing some premium in the option write against the underlying. The downside is 2 fold, the equity may continue to trend lower or it may make the upside move that you are waiting for and your gain would be limited against the amount of premium recieved. Timing is everything in doing a covered call write and is best used when the underlying is near the strike price, but your analysis shows a good chance of it not closing in the money or you don't want to sell the position, but feel it may show some near term weakness. A list of TIE options; financialweb.com The Sep 10 calls traded as high as 1/2 yesterday on good volume and if sold there would generate a 5% return in 8 days on the underlying if called based on cost of 10. I don't recommend options to everyone, but they can be an important tool on the financial battlefield. Good Trading Dave