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Non-Tech : The Critical Investing Workshop -- Ignore unavailable to you. Want to Upgrade?

To: Voltaire who wrote (5515)	2/28/2000 6:36:00 PM
From: Clappy	Read Replies (3) \| Respond to of 35685

Voltaire, Now that you spun me around to the otherside of the big picture, I have couple questions for you. <A reminder for others... In my case I'm attempting to build my IRA account in a safe stress free way...So my questions are geared in that direction. Others who are writing calls for income may be doing it different from me...I think...> Question 1: With a small nest egg, would I be better off buying a lower priced gorilla candidate, thus maximizing the number of contracts I could write? (Like GSTRF) (Also, I am assuming a gorilla candidate because premiums may be higher, no?) Question 2: Should I chose an in-the-money premium that adds up to the 7% I am aiming for? or do I write calls for 1/2 my holdings at 14% (I don't think so...)? Question 3: Do I attempt to write calls only in the current month? Would it be better to spread out the 7% each month by writing calls for increments of "current month, one month out, two month's out" ? Question 4: Certain stocks can explode well past the strike price + premium. If it goes more than 7% past the strike price, I will have to buy it back later at a higher price. This will reduce the number of shares I can buy and possibly make it so I can't write as many contracts. Do I attempt to make it up buy writing the next calls at a higher percentage such at 9%-10%? Question 5: Do I automatically reinvest the 7% each month by buying additional shares or should I save a good portion in cash? Question 6: Am I driving you nuts with all these questions? -CuriousClappy