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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (13342)	10/17/2000 1:09:53 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 14162

Mucho, I will simply allow myself to be called out. If I felt particularly bullish, I suppose I could put on a new call play on LU if it finds a base and starts to recover. I guess the only thing I might do differently is to take a smaller gain to unwind the position if the price were to rise well above 25 in the next several months. One of my test cases, where I swore I would hold till expiration as long as I was in the money is GENE. I have written OCT15 and OCT25 long before it ran up to the high 30s. At that time the calls were very expensive, with delta approaching one, and my future gain was limited to $2 or less. Again, it is with perfect hindsight, but not cashing out on a fairly quick smaller gain has cost me a lot that I could have taken. Dan