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Strategies & Market Trends : WR's Covered Calls -- Ignore unavailable to you. Want to Upgrade?

To: Jerome who wrote (27)	10/29/2000 9:29:44 PM
From: Wayne Rumball	Read Replies (1) \| Respond to of 68

At some point in time I would like to explore how to deal with the cc stock that just falls apart. TER is a good example. Bought it at 40 and wrote the 45's only to see it sink to the mid 20's. The question is now what? that is the risk isn't it. But then you have less risk than someone that simply bought the stock. What now? Buy back the 45's for nothing and write 25's or 30's. people have to understand that this strategy really only works for stocks that you plan to be long on for quite a while. It is not really a way to make money, it's a way to reduce potential losses, or make a little extra on a stock that you like.