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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: Herm who wrote (11970)	12/1/1999 11:17:00 AM
From: Casaubon	Read Replies (1) \| Respond to of 14162

Herm, He should be OK, he sold deep in the money april calls for something like 9 1/8. He should just sit back now and let those puppies decay. I agree it was probably inexperience which put him here but, he's got a LOT of downside protection!

To: Herm who wrote (11970)	12/1/1999 11:44:00 AM
From: the options strategist	Respond to of 14162

To Thread-OT: Now that we have given thanks for all our blessing, I would like to ask those who have been economically blessed from this market to contribute to my fun(d) raiser party with partial proceeds going for the Arthritis Foundation. As a victim of chronic arthritis, I have taken this foundation on as a cause for next year. So... I plan to have an event celebrating my success with arthritis and honoring those who suffer from it while raising funds for the foundation. I have Herm's permission to ask and will not ask again (for this event) but for those who would like to contribute, you may contribute anything you like. However, if you'd like your name to be in the program as a sponsor, there are contribution levels ranging from $35 to $100. If you are interested in contributing, you will receive a program (if you like) and your name will be on a list that will be placed on the thread (assuming there is a list) :) This is my first attempt to raise funds and I look forward to making a contribution to what I think is a worthy cause and hope that I can count on those who may feel the same. Please contact me at: jenyce@pinn.net for more info and on how you may make a contribution. Thank you Herm for allowing me to make this request. jj

To: Herm who wrote (11970)	12/1/1999 11:11:00 PM
From: Amit Raj	Read Replies (1) \| Respond to of 14162

Hellow Herm!, Dan!: Thanks Herm! and Dan! for your suggestions on MCOM and OXGN in the past, which helped me to get out of these positions with very small loss. This time I am writing about another position I am in and again ask for your help. A couple of weeks ago I bought 2000 shares of CYGN at $9 1/4 and sold Dec.10 calls at $2. Recently I came to know that CYGN has developed a GlucoWatch monitor which is going for review by FDA panel on Dec. 6. Considering this coming news in mind what is the best play I can make at this point. Today CYGN closed at $9 9/16 and Dec.10 calls are at 1 5/8 X 1 3/4 and Dec.10 puts are at 2 1/4 X 2 7/16. It seems that sideshow calls and puts are going to be very expensive. Any suggestion to handle this situation will be greatly appreciated. Amit

To: Herm who wrote (11970)	12/2/1999 9:44:00 AM
From: Dave	Read Replies (1) \| Respond to of 14162

Herm- Thanx for the info on the Excel spreadsheet. Downloaded it and am currently learning my way around it. Wonder if you would'nt mind critiquing a rookies first foray into covered calls. Bought 300 TYC a couple of weeks ago @ 43.5 net cost basis incl. comms. Sound company I felt had been beaten down without reason and some price appreciation looked to be in order. Found your thread and wrote 3 Jan 50 calls @ 1 15/16. Took in $546 net of some other dude's money.Adj. Net cost now 41.68 Stock fell, and I covered @ 3/4.( using SOD money :-)Adj. net now 42.43 YeeHaw! My first Dippity Do! Sold 3 Jan 42 1/2's, took in $726 of SOD $.Net cost basis now 40.01. Stock has since fallen to 39 7/8 yesterday. My initial reaction was to buy some protective calls myself with SOD's $, but after practicing some PATIENCE, thought I might wait to see if price drops more, what with jobs report tomorrow. How am I doin'? Question: Re: "covering call when 80% of the premium still remains" Does this mean that you'll only allow the value of the premmie you rec'd. to go down by 20%? b4 you buy the call back? i.e. you receive 1.00 premmie for Jan 45 call you sell and due to stock depreciation your call buyers call goes down .20 and you buy back? Thanx in advance for your reply Dave