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

To: FaultLine who wrote (720)	5/21/2001 7:44:45 PM
From: JohnM	Respond to of 5205

What I was saying John is that you'll always get the best premiums from wildly optimistic buyers. Even though you are thinking up and down in a trading range, they are coming out of the woodwork to jump on the bandwagon as the stock price starts running up. The premiums get fatter and fatter as the climb continues -- they all know this is the big one. (Yeah right...) I've definitely got both the logic and the psychology of that down. No problem. It's the execution that's difficult. For instance, look at Qcom tonight. Sell calls tomorrow; wait to see if it has more running room; wait to see what the new trading range will be? I don't think it's possible to know answers tonight. I guess I'm conservative. But any Qcom strategy which depends on 71 as a short term high, bothers me. I'm going to look at some charts in a few minutes to see I can find resistance points; as well as look at some other stocks. Most likely, though, I'll wait until I can tell whether that large buying surge everyone talks about, the one that's just waiting to get into these stocks, happens or not, is happening or not. That may take a couple of days. John