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.

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

To: RocketMan who wrote (29334)	8/17/2000 6:28:33 PM
From: nolimitz	Respond to of 35685

Re: RM@thisseemstooeasyimustbemissingsomething.com My thoughts exactly. But I'm just a thick headed punk. Starting to sink in a little. Have never done options before.

To: RocketMan who wrote (29334)	8/17/2000 6:31:38 PM
From: Mannie	Read Replies (3) \| Respond to of 35685

Rocket...No, you've got it. Buying and writing immediately, at the money, gives you the greatest premium. Scott

To: RocketMan who wrote (29334)	8/17/2000 6:32:25 PM
From: drenko	Read Replies (3) \| Respond to of 35685

Hey RocketMan.. I am no pro but here is kinda what I do. I buy my 1-3 stocks right after exp day(since this is right after I get called!!). I sell a CC that day or within the week. The the rest of the month I try and figure out the best plays for the next month. Earnings, election coming up...see what is going on and go from there. Plus I have about 15 stocks I watch and know pretty well so I try and stick with those. Of course they change from time to time...some leave...new ones come in and so on. Anyway there is my 2 cents and that may be all it is worth. Good luck and ask anything you want.... -drenko

To: RocketMan who wrote (29334)	8/17/2000 7:22:12 PM
From: Jill	Read Replies (4) \| Respond to of 35685

RM--another point, I think Volty made on the board last night and it's important--let';s say at some point the best laid plans go awry (i.e. you were trying to buy-write at the bottom of the channel, hoping to either keep premium and/or get called, pocketing an additional bit of change, and buy-write again) and market downdrafts or there's FUD or bad news and kaput, your stock goes down 20 or 30% or whatever. So you had elon at 35 now suddenly its 25. So you say, okay, I'll buy-write at 25, it's percentage income I'm after and that remains good. But then that month, it RECOVERS and you get called out at 25. Now all you have is 25. And that's no good, you lost more than you gained (maybe--depends ho wlong you were doing it) What you need to do if that scenario pops up is buy the calls back at a higher price and roll out, until you're back in the black. Volty notes how he made a fortune doing that when Dell went 90 to 45 and then recovered This means in order to prepare for the occasional problem such as that, you only do this on a modest proportion of your portfolio. You don't buy-write on the whole thing by any means. You have to have some room to take a few hits, i.e. to be able to take time to recover