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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: jaytee who wrote (13661)	3/16/2001 8:23:05 AM
From: JGoren	Respond to of 14162

what strategy are you guys using now that volatility is so high and the premiums for April CC's look higher than normal, I guess because of the drop and anticipation there could be fast bounce back.

To: jaytee who wrote (13661)	4/6/2001 5:58:27 PM
From: NateC	Respond to of 14162

Jaytee...sorry...I haven't been on the thread for a while Yes....I was CCing ITM for a while....and it worked out OK in this bear market. most of my CC's have been ATM. still.....with my LEAPS spreads.....I've had some significant losses....due to decreased price AND volatility of the Long LEAPS calls SUNW, ORCL for example

To: jaytee who wrote (13661)	4/6/2001 6:02:00 PM
From: NateC	Respond to of 14162

Jaytee...there was more to respond to I've gotten pretty cavalier about assignment on CCs. Ameritrade and Dreyfus....my 2 brokers......have essentially a 3/4 rule....3/4 point ITM and they'll exercise.......but it doesn't mean much. I've been exercised when a stock finished 1/2 point OTM...and ATM...and 1/8 ITM as well......usually by manipulative market makers after the close....who increase the after hours price to the strike price + 3/4....and assign. BUT...on a CC...if that happens....I'm then short..at a slightly inflated price...and sometimes on the Monday following.....i make a little on the short transaction...before I close the short. (I'm short as soon as they exercise my CC) but I've lost too......and usually now I just buy back the CC on expiration day...as late in the day as I can......trying to buy back very little or no....time premium hope this helps