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Strategies & Market Trends : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?

To: Judith Williams who wrote (90)	4/20/2001 4:57:41 PM
From: Uncle Frank	Read Replies (2) \| Respond to of 5205

>> given the sharp spike, decided just to let them get exercised and take my chances on a relaxation in price It's not necessarily the wrong thing to have done, Judith. I hope it was reasonable as I did the same thing. Sebl's had a gigantic run in the past few days, and normal market mechanics dictate it will dip to fill the gap. It only seems grim because Mr. Market is giddy over the surprise of the interim rate cut, but that effect has proven to be short lived in recent times. I'm hoping that if we're patient, we'll be able to re-establish our positions at reasonable prices. jmho, uf

To: Judith Williams who wrote (90)	4/20/2001 11:16:09 PM
From: William	Read Replies (2) \| Respond to of 5205

What Judith encountered is something that all should heed when playing the options game. That is earnings announcements. I have omitted writing covered calls on some stocks for some expiration months due to earnings announcements. If I am expecting(spelled hoping) a nice earnings jump and a corresponding jump in stock price, I will forego the CC since it will not price in the price jump I anticipate. Should you forget this, Mr. Market will remind you. This is generally more important in a rising market then in a falling one. This past year one could have played the game the other way. William

To: Judith Williams who wrote (90)	4/21/2001 3:27:30 PM
From: cfoe	Read Replies (1) \| Respond to of 5205

You know what you should do, but somehow are caught like a deer in headlights Thank you for saying this. It has been my experience exactly over the past year. The only difference may be that the market did not do it to me - I did it in every case. The real value of staying up with a thread like this is that hopefully it will help shield my eyes from headlights so I don't get run over quite so often.