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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: Jill who wrote (3765)	2/27/2000 8:18:00 PM
From: DOUG H	Respond to of 8096

Well, if you want to exercise, yes. If you want to trade calls, it's a little more complex LOL! Yes, I understand. I've never traded an option in my life so I'm just trying to see how it works. As the markets perception of Q's stock(used only as example) changes, that premium amount changes as well and that is where the moola is made. Thanks. D.H.

To: Jill who wrote (3765)	2/27/2000 8:26:00 PM
From: alias	Read Replies (2) \| Respond to of 8096

Jill, As you probably know from the Porch I've been hammering V on CC's. He's given me some "basic" understanding and I still have some questions for him but he's got a full plate and I think it best I should come over this way for more/additional direction. I'm interested in "protecting" my Gorilla holdings, using them to my advantage if possible and generating income. There are still some "basic" issues which I simply do not grasp. One issue at a time, however: Why would one write at the money CC's on a volatile Gorilla. I do not understand why one's stock would not be called away if (using the example I gave V) you wrote at the money calls on Q at $135 to expire in April and the stock goes to $170 before or at expiration. Or similar scenario for JDSU for that matter. Would appear to me the time to write CC's on high flyers would be after a run-up or after settling down after earnings, etc. I could see buying a stock and writing CC's on a stock you don't particularly give a damn about holding and doing it just for income. What is it I need to get pounded into my brain in this regard? Thanks, Alias