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

To: bozo1 who wrote (12217)	4/11/2000 8:28:00 PM
From: Voltaire	Read Replies (3) \| Respond to of 35685

Hi bozo, sounds like you might be a distant cousin of the Beano family. On the surface it looks like you are correct but you are thinking shares not per cent, you must think per centage of return. I wish I could get that every time because that means I got the full return on my Call writing. I never look at it that way. If they are going to give me 32% in two weeks on above average stocks I'm going to take it. I mean hell, that is only a 832 % annualized return non compounded and yet people are worried about paying 20% ST capital gain. If you don't need the income then you might want to write for downside protection at times. All I ever hear is Premium, premium when probably the most valuable aspect of CC writing is the downside protection in times like these. I am still covered on a 130 contracts of QCOM april 130's that I wrote just after last quarter's earnings and have seen no reason to uncover. You can see, I got tremendous income and also great DS protection. The answer to your question is no. Let's say that MSFT is paying 10% on May ATM calls and I buy 1,000 shares. I get called out and MSFT is still paying 10% for the next month. I still have my stake plus 10% and I just reinvest it. True, I have less shares but we are interested in return when writing calls and outside of making up a 100 share lot it is moot. Ten percent return is ten percent even if it is one share. trust me, you can find something technical to counter everything. Just think in terms of return, not shares. V