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

To: tekboy who wrote (486)	5/9/2001 2:51:23 AM
From: FaultLine	Respond to of 5205

'course, at a decent college you'd have been taught by professors and not grad students... wicked brushback pitch ya got there tb... --dfl

To: tekboy who wrote (486)	5/9/2001 5:39:30 AM
From: Seeker of Truth	Respond to of 5205

RE: puts vs calls. I think when a stock is cheap we should own it and not sell calls at all. When a stock is average priced we can sell calls at a distant price. When a stock is expensive the covered call is great because we won't mind an execution at the inflated price. When a stock is too expensive but we really would like it in our gorilla portfolio we can always sell puts at a price substantially under the current market. In other words the decision about puts vs. calls should depend on the price of the stock. OT Actually, tekboy, I think the best universities put research and the education of the grad students as the number one priority. Undergraduate instruction is less important and a bright grad student might very well be a better teacher than an expert in the field. IMHO take the number of graduate students and divide it by the number of undergraduates and you have a rough guide to the quality of the place. There are exceptions, of course. Not so OT: Once I did an experiment to see what spare cash could "return". The idea was to have spare cash around to jump on the surprising opportunities. The spare cash was generated either from new savings if they were available or by selling some of the least interesting holding. I found I was making ~30% a year from this spare cash. The cash was always generated in some way or other very soon after using it. When you are being executed on a call and you have changed your mind about the stock, i.e. you really want to keep it, it is usually the case that when you get near the striking price that it's much cheaper to buy the stock and get called than to buy back the call. Here's a case where the use of the money for a few days saves lots.