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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: lurqer who wrote (30082)	1/27/2001 5:41:15 PM
From: Jill	Read Replies (1) \| Respond to of 65232

Hi lurq, I think its a good market for cc both psychologically and income-wise. I don't know if you're oding it on your long term holdings, but in my case I'm just doing buy-writes. So I'm looking for stocks that are basing or at the low end of their channels--I don't wnat something that spiked up and I bought at a high price and my cc covered my loss. I want income...and less stress. During this time period because of the volatility, the cc are indeed paying well. I suppose that 15% in two weeks on CMRC with a buy-write at exactly 17 1/2 on stock and calls was unusually good. But let's pick a lower figure and say you did 10% a month. Well let's just say you did it on 100K of income and reinvested (which I'm not always doing--I'm spending). So if you start at the end of Jan w/ 100K, approximate figs follow: February expiry: 100 K--add in 10K March expiry: 110K--add in 11 K April expiry: 121 K--add in 12K May expiry: 133K--add in 13K June expiry: 146K--add in 14K July expiry: 160K--add in 16K August expiry: 176K--ad in 17.6 K So in six months you have 194K approximately. Thats if you did 10% every time and each time got called away. Nothing is that perfect, of course, but all I'm saying is you can make very good $ this way even if it isn't always 10 (sometimes you might feel the best stock to do that month is paying 7%...another month you might get a lucky cmrc one and get 15% in a couple of weeks)...and even if there are some mistakes. In a volatile market that is not sure of itself, or is volatile and slowly uptrending, I think it works well. I had said before I thought the time for ITM calls had come but in fact premiums are so high I'm not as keen on that as I thought--