Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Herm who wrote (12136)	1/4/2000 12:52:00 AM
From: Jeffry K. Smith	Read Replies (1) \| Respond to of 14162

Hi Herm, Thanks for asking. It's very nice of you. Yes, I do both covered calls and call spreads, either with next month options or one long term and the other short term. Usually I buy a DITM call and sell another as a spread. I am Level 2 approved, and will probably apply and get Level 3 soon. My areas of weakness are 1) not much knowledge or "feel" for when to buy long puts, 2) no clue about put spreads (if there are such things) 3) PUTS - I know nothing! LOL, 5) how to read the market and sense when I should be in all cash or have long puts, and 6) some of the more elaborate strategies such as buying a call and selling a put at the same price (how to figure out what play to make, the risks and rewards). My biggest concern right now is #5 - I can profit by doing what I am doing now, but if I create one of my great spreads and have both legs of my spread with the next month's options, I'm dead. I don't know if there is truly anything to TA in all its iterations, but I quite possibly have that feeling because I am not knowledgeable. I would like to know if such things can truly give indications. I am sitting on more money than I have ever had, largely due to spreads on QCOM and CMGI over the past few months, and want to protect and enlarge what I have. Finally, I am pretty averse to long calls (esp. those with large premiums), as over many years a combination of greed and inexperience has caused me to lose many dollars. That pretty much tells about me, together with my profile. BTW - I checked your site, and although it is getting late tonight I am going to study up on BB's and RSI thanks to the nice links you have there. Are these things reliable indicators? Thanks again, I have plenty to learn, and hope I can offer a thing or two to others less experienced. Jeff Smith

To: Herm who wrote (12136)	1/4/2000 6:11:00 AM
From: virgil vancleave	Read Replies (1) \| Respond to of 14162

Now that the y2k scare is over, it is nearing the time to be bearish again. Too bad I won't be here since I leave for sea again soon. It is my opinion that we are just about to get a nice correction. Which means that virg-bear is back in action. I sold 75% of my long positions yesterday, and am not short yet. I am looking at qcom, emlx, lwin, and a few others that trade at valuations of 40 or more times revenues since I think these will fall quite quickly. Just putting in my 2 cents. I have been right many times in the past on corrections and made some nice profits on the downside. Covered puts work well also. good luck all.