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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: Casaubon who wrote (11576)	9/20/1999 10:59:00 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 14162

Cassaubon There are of course buyers of those calls who are betting the stock will make their breakeven point, around 10_1/2 if they bought this morning. Still, I understand your point, and the logic of it is sound. Unfortunately, in my very limited experience that thinking has cost me a bit in lost opportunity. I already mentioned PAIR in an earlier post, but of course that was news driven so I don't make too much of it. Last week I also bought CIEN at 37_9/16, and noting a heavy open interest in the Sep40 calls sold them for only 1/4 thinking they would cap any move up and I would sell something farther out this week. It blew right through 40 and came to rest at about 42 on Friday. I can't complain about the 2_11/16 in just a few days, but I left almost another 2 on the table by selling those calls. Obviously I need to gain more experience to better judge what will cap and what won't. With IFMX, I'm looking to sell calls at 10 (already sold some Jan10s), so I won't mind if it does cap there. If it does happen to blow 10 away, I'll have some time for repair with this one. For now, I'll leave the 12_1/2s to stronger younger bulls. By the way, I've never heard of a "bengy", and I dare not hazard a guess!! Dan