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

To: rocklobster who wrote (534)	5/12/2001 12:21:23 AM
From: BDR	Read Replies (2) \| Respond to of 5205

<<so now, any ideas for stocks with 8% premiums that won't go down?>> Herewith a source of stocks with better than 8% premiums and stock price less than 30. But do your own DD regarding the possibility of "going down". (g) Lots of "aromatic" stocks on that list. Scroll down towards the bottom of the page for a list of stocks with June premiums greater than 10% of stock price (using premium/stock price). coveredcalls.com The following June calls are all yielding 8% plus: QCOM 60, SEBL 42.5, JDSU 22.5, NTAP 25, AVNX 17.5, RMBS 12.5, GLW 22.5

To: rocklobster who wrote (534)	5/12/2001 12:45:46 AM
From: Mike Buckley	Read Replies (1) \| Respond to of 5205

rok, I want to buy the stock and immediately write ATM or slightly OTM calls for an 8% premium each month. 8% compounded for 12 months is 250% annualized return. First: It's a 150% return, not 250%. If you invest $100 and earn 8% monthly on the principal and all of the earnings, it will be worth about $250 at the end of the year. Second: Not having written covered calls, I'm not sure of the mechanics. From what I've read here, I don't think you would be able to use all of your capital effeciently enough to be able to compound all of the earnings all of the time uisng a buy/write strategy even if the underlying stock always went in the right direction. --Mike Buckley

To: rocklobster who wrote (534)	5/12/2001 1:59:26 AM
From: tekboy	Read Replies (1) \| Respond to of 5205

I've just spent the past five hours reading this thread from beginning to end lemme guess, you just retired from the carpet business, right? dtb

To: rocklobster who wrote (534)	5/12/2001 11:19:27 AM
From: Uncle Frank	Read Replies (1) \| Respond to of 5205

>> I am setting up an account for doing a covered call writing campaign. I need some suggestions on stocks with high premiums. Jmho, but I think you're putting the cart before the horse. Making 8% a month from covered calls on a portfolio that's declining 10% a month wouldn't be a very satisfying result. Selling cc's against stocks that you've selected because of fundamental excellence is the prudent approach. Why not look to your own long term holdings for candidates? uf