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

To: Tom Chwojko-Frank who wrote (714)	5/21/2001 3:49:26 PM
From: rocklobster	Respond to of 5205

obviously I wouldnt plan on holding the stock if I got bought in.. I would place a sell stop under it immediately so if stock fell back I would be out again. I understand this could produce some whipsaws, but you have call premiums to cover that scenario.. just thinking out loud. rok

To: Tom Chwojko-Frank who wrote (714)	5/21/2001 4:28:16 PM
From: JohnM	Read Replies (2) \| Respond to of 5205

You have just been forced to buy at the top. Thanks for the post, Tom. I'm just doing the scenarios right now. Had not yet gotten to that one. Now I can skip it. However, what became obvious as I scoped it out was the market timing skill required. Not me. I'm very good at buying high and holding low (g). At least that's the tech portion of our portfolio right now. Clearly there is some market timing in these covered calls. That's why I keep checking scenarios so as to reduce my dependence on it. Might sell some tomorrow. But a marvelous day for the portfolio. Up 9% thanks to almost all of them pulling their weight--sebl, qcom, ntap, itwo. However, I am trying to position us for a downturn sometime in the next two or three months. John