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

To: Naveen Kumar who wrote (58597)	6/3/2000 1:34:00 PM
From: cbaker9552	Respond to of 58727

Yes, covered call writing is not for everyone. It requires discipline. For example you could have made about a 30-50% profit on NVDA over several months by writing calls several strike prices out from where NVDA was trading. That way you realize gains even if NVDA doesn't meet the strike price. If it does then you also take that gain into account. The best thing to do is watch how others do it. Visit thecoveredcall.com to learn more!

To: Naveen Kumar who wrote (58597)	6/3/2000 4:47:00 PM
From: Rick C.	Respond to of 58727

There are some fine resources around, including this. Message 13801394

To: Naveen Kumar who wrote (58597)	6/3/2000 11:38:00 PM
From: Hans	Respond to of 58727

I've been called out on some good stocks. Now I try to sell near an obvious peak, or sell calls only on stocks specifically bought for that purpose. For example, CSCO is a great company but the PE is too high for my taste. But I would be comfortable buying it and selling at the money calls. This gives you some downside protection and a good shot at a quick 5 - 10 % depending on the stock and premium prices. -hans

To: Naveen Kumar who wrote (58597)	6/7/2000 9:12:00 AM
From: Alfred W. Post	Read Replies (2) \| Respond to of 58727

I have a neat system you might want to try, neat because it does not cost you any cash: Look for a good stock that has advanced quite a bit. Chances are that the price for a PUT is quite high. (tje fear of loosing on the profit)Now look at the calls of the same stock. Ideally this should be a fraction of the Put. Now sell the put and with that money buy calls. So you are not out any money. The only risk you run is, that if the bears are right and your stock slides past the strike, you might get stuck with it. But remember, I only recomand doing this with good companies and than chances are that you were lucky to get in on that stock, not at the lowest price but near the bottom and you end up smelling like roses. Ideally you are going to make out on bothe, the stocks you were given and the calls. I did this successfully with Jack Hernry, Lucent and in the not tech field with Pfizer. It did not or not yet work with Chlorox. Good luck Fred