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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: StaggerLee who wrote (11828)	11/15/1999 8:17:00 PM
From: virgil vancleave	Respond to of 14162

Just thought I would respond to your reasonings about wether it would be better to hold the stocks than sell the calls. For most people (me included from past experience although I am better at it now), when they have a winner they "fall in love with the stock" and refuse to sell it. Then when it starts dropping, they reason out that it will come back. Then, just as the stock hits its low they "give up hope" and sell their position for a large loss. What I like about covered calls is that it forces you to sell your position and also covers some of the losses when one goes down. I do still trade, as you have most likely read my post on zolt and cell recently. I did not get the high, but I did not get greedy and am moving on to the next trade. I personally do about 75% of my equity into covered calls, with the rest used for trading. TRhat includes options which Herm calls sideshows. I am also not afraid to short, buy puts, or do covered short positions. One I am currently checking out is lwin for covered puts. And, with the reversal today, I would go short qcom too, but that is my opinion and risky. But, as my uncle says, the higher the risk the higher the reward. I hope this helps. And, yes, covered calls will return a nice 10%+ return and more if you know how to use your margin effectively, including the few months where you will have one or two trades that lose. Good luck.

To: StaggerLee who wrote (11828)	11/15/1999 8:17:00 PM
From: virgil vancleave	Respond to of 14162

Just thought I would respond to your reasonings about wether it would be better to hold the stocks than sell the calls. For most people (me included from past experience although I am better at it now), when they have a winner they "fall in love with the stock" and refuse to sell it. Then when it starts dropping, they reason out that it will come back. Then, just as the stock hits its low they "give up hope" and sell their position for a large loss. What I like about covered calls is that it forces you to sell your position and also covers some of the losses when one goes down. I do still trade, as you have most likely read my post on zolt and cell recently. I did not get the high, but I did not get greedy and am moving on to the next trade. I personally do about 75% of my equity into covered calls, with the rest used for trading. TRhat includes options which Herm calls sideshows. I am also not afraid to short, buy puts, or do covered short positions. One I am currently checking out is lwin for covered puts. And, with the reversal today, I would go short qcom too, but that is my opinion and risky. But, as my uncle says, the higher the risk the higher the reward. I hope this helps. And, yes, covered calls will return a nice 10%+ return and more if you know how to use your margin effectively, including the few months where you will have one or two trades that lose. Good luck.

To: StaggerLee who wrote (11828)	11/16/1999 8:34:00 AM
From: Herm	Read Replies (1) \| Respond to of 14162

Welcome to the forum StaggertLee! You've asked a good question. Is it possible to earn 7% to 10% ROI per month by writing covered calls? Wow! I would love to hear your reaction when you discover writing spreads (basically CCs) with LEAPs. I like SWY LEAPs at this point. SWY would make a good CC workhorse iqc.com From my perspective, I know plenty of folks doing that and more on this forum. I myself have been doing that for quite some time. That's why I'm into this form of investing. So, the answer is yes and no. Notice, I also said no. There are some downsides to CCing. IF you are prepared to take proper action, yes, you can reduce your damages and turn the lemon into profits. That is where the majority of monthly paid services fall flat on their faces. That requires work and those services don't want to be dragged down by having to do the extra work. Please, note! There is a difference between 7% of $1,000 vs. 7% of $1,500, $2,500, $3,000 etc. My point being that the ROI is very hard to determine because the value of the stock(s) will appreciate and depreciate when you are long on a stock and are CCing for that extra income. Now, can you cherry pick you stocks to CC each month or every other month? Sure, at a price. It is much more work! Try the free newsletter at coveredcalls.com and check out the data while you are there. In closing, you have come to the right forum on the internet geared towards education on covered calls investing and learning from each other by sharing experiences. I hope to decide to make some contributions to the topic. You can download my free WINs PowerPoint presentation at coveredcallswins.com.