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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: virgil vancleave who wrote (13658)	3/15/2001 6:51:50 PM
From: Herm	Respond to of 14162

You've had the magic touch five out of five bearish warnings with ample time to setup. It sure has kept my powder dry the last few months. :-)

To: virgil vancleave who wrote (13658)	3/15/2001 7:17:29 PM
From: NateC	Read Replies (2) \| Respond to of 14162

Virgil...right you are. I've NEVER seen this board so quiet...in the 2 1/2 years I've been monitoring it. This might be the best news...EXCEPT that I'd rather see a bullish Call BUYING board quiet...rather than this one. anyway....the Naked Put Sellers are pretty quiet......and lots of people seem to be heading for the sidelines......which possibly we should all have done back in about Sept or so. I learned CC's here...and starting talking about Calendar Spreads. I do Calendar Spreads slightly different than Herm advises....but heck, I learned it all from Herm, don't get me wrong. I buy the longest-out LEAPS call I can.....sometimes slightly OTM. Today I bought CISCO Jan 03 $20 for about 5....and sold March calls (expiring tomorrow) $20 for about 3/8 I think it was....so I'm making 6% after expiration tomorrow (unless I have to roll out)....then I'll sell April calls....and right now...they may give me about 20% of my $5 back. I figure that even tho CSCO has a way to go downwards.....(I see it down as low as 12-14)..........when the NAZ hits 1500....which I think it could still do..(like you)........but I can CC this puppy for a while....and I think the Jan 03 CSCO $20 call is probably a safe bet. If not...I'll sell it later this year.....while it has over a year of time value left (to sell). Having said all of this....I'm still bothered by CSCO's PE of about 50......too high. I've been shorting a bit too.......but only the last 2 months...so many of my spreads have taken big hits. You have to watch WINS spreads CAREFULLY....because as these underlyings have tanked. (ORCL, SUNW, EMC, AMCC, etc)........the bulls have pulled in their horns....and the volatility of the long LEAPS calls has dropped....in some cases....much more than the stock....so you can lose big with this technique...as well as making money... anyway.....I'm pretty well hedged hopefully.....with my shorts...and a few puts......... I like your few long choices.....and I'm keeping my powder dry also.........Looking at Stocks with LO PE:ROE ratios......and low PE:CashFlowGrowth Rate stocks.. Someday...they will take off.....and they might be save for CCing or spreading...since these 2 ratios should ascertain that they are near support levels. enough for now will be interesting to see if this board revives before the Nasdaq does. Hi Herm!