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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: Andrew Williams who wrote (12117)	12/28/1999 3:51:00 PM
From: Tom K.	Read Replies (1) \| Respond to of 14162

....have you been practicing it for a long time? How has it worked in steep market declines like in 1987 or 89?.... Andrew, although I've been in and out of the market for years, I've only been using this particular approach of selling PUTs for cash flow coming up now on 3 years. And of that, there was some learning at the start. And I admit that during this rising market period, a lot of sins can be masked. However, my logic is that by using high quality issues with large capitalization, giving myself lots of cushion, being diversified, and staying short term (< 90 days), I'll be able to step aside early enough if there is a serious market turn...... of course the real test will be when it comes. Even now I've become a little cautious because of the thinness of the current market. Tom