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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: Herm who wrote (13562)	2/1/2001 6:11:21 PM
From: Jill	Read Replies (3) \| Respond to of 14162

Last month I started doing buy-writes for income. I was tired of watching the market so closely and position trading. My first buy write was cmrc at 17 1/2 (buy price for stock and sell price for calls), I got 15% for a little less than 2 weeks. Of course, annoyingly, cmrc had great earnings and it practically doubled since then, but my approach to buy-writes right now is to do them on a stock that has been volatile but is starting to stabilize at the low end of its channel. That is a safe way to get good premium and yet not to lose on the underlying. The next buy-write I did was for PALM at 25, for 10%. That's for the month. Today when NTAP went down I was sorely tempted to buy at 43 and write calls at 45. Instead I chose extr, when it went down to 43, as that seems fairly stable for it considering it already had earnings and sold off from 50 and has been trading in a range of 43-50 since then. Especially since we got our rate cut and promise of further if needed. I wonder what you think of all this? I felt NTAP could still be somewhat risky because of earnings tho most likely it would recover as the low mid 40s is its consistent selloff point since last spring and then it trades up quickly. Any thots? My purpose here as you can see is to get called out each month.