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

To: FaultLine who wrote (549)	5/12/2001 8:01:21 PM
From: JohnM	Read Replies (1) \| Respond to of 5205

Resurfacing after a couple week's of study John? <g> What do you think about Thomsett after working your way through it? --fl Ah, Ken, so you caught me. I was hoping to sneak by. Just wanted to grab a little info and scoot on out the backdoor. You're too quick for me. As for Thomsett, it is exactly, and this is a rare comment, the right book for me right now. I find it hard to jump right into complexity. Have to build my way up. Thomsett does that for me, perfectly. And with selling options I find it especially difficult. The logic seems the reverse of my usual. I remember a comment on one of the SI threads, I think it was by Bruce Brown, about the difficulty of wrapping his head around rising interest rates and lowering bond prices. He said something like it was necessary to walk around the house, time after time, reciting "prices up, rates down, rates up, prices down" and on and on. I feel that way about selling options. I'll get it; Thomsett explains it well; I just haven't walked around the house enough times. So I'm working on scenarios and need to use data to check them out. I learn best with concrete examples which become thought paradigms. These scenarios will do the trick. I can do paper trading but I'm much too impatient to wait several weeks for scenarios to work through. I'll check out a few things using the historical stuff, if that's possible, then do some very cautious, color me yellow, trades. And build slowly. And I'm still getting permission for options trading in two of my accounts. I'm particularly grateful for the discussion of the usefulness of the share cost basis for calculating gain and loss. I'm still not certain what I will do with it but I've got more than my share of shares of Qualcomm well under water from purchases in the first six months of 2000. I find it hard to wander away from the thought of those prices, take the losses, and then reset myself with the money now available. As for the time it's taken me to get back from reading Thomsett, well, I'm still not done with that assignment. Turns out retirement is a time consuming vocation. First, you have to get through all the ceremonies to be retired. And each of those require some talking, which has to be new, well spoken, and humorous. And then there's adapting to a less stressful life, as some have put it. Gonna have to learn that one. I keep looking around for the next package of projects, the next set of papers to grade, the next conference to attend. But, like options, I'm learning. John