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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: JEFFLUST@AOL.COM who wrote (13356)	10/21/2000 6:49:00 AM
From: jaytee	Read Replies (1) \| Respond to of 14162

Jeff: As you may have guessed, there are no special or "secret" techniques for this problem (that you haven't already heard of) You can: 1) take your profits (and be thankful, in this market) and let it get called away 2) cover the covered call if you would a)like to continue owning this stock/b) or see more upside for another round of cc's at a new, higher price (or pure appreciation on the underlying , alone) or c) want to buy back for tax reasons That's why it's important to pick up on HERM's charting expertise that he shares. It's not always going to save you if get a "breakaway " stock out of the blue. But, it can often help you w/some pre emptive actions. Speaking of which, oftentimes I read about CC writers "investing" part of their premies on some "insurance". AKA buying PUTS to protect their DOWNSIDE and BUYING CALLS to catch the UPSIDE.. That way they can make a little jingle on the call, to ease the pain of the lost appreciation on their CC stock . . . or exercise the call they bought as a SIDESHOW . . . and get on board that train, so to speak, and ride IT for the next round. Hope that helps jaytee