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


To: BDR who wrote (837)5/30/2001 1:13:09 PM
From: BDR  Read Replies (1) | Respond to of 5205
 
I have had time to sleep on the subject of volatility and have one further thought. Periods of high volatility may not be good time to write calls only if you intend to hold the stock and are writing just to earn some extra income from your position. VIX peaks may indicates a short term run up in the market and that would increase the likelihood of being called out. The person doing a buy/write with the expectation of being called out would look on those conditions as ideal.

I notice that I am offering an indicator for timing call writing at the same time that a discussion is going on about the futility of trying to time the market. I agree with both. (g)



To: BDR who wrote (837)5/31/2001 12:43:53 PM
From: Uncle Frank  Read Replies (1) | Respond to of 5205
 
Thanks for the continuing the conversation about volatility, Dale. Tracking the cboe indexes has become an additional element in my covered call decision making check list. Fellow dummies looking to get quotes on the vix and vxn might find the following link useful:

finance.yahoo.com^vix+^vxn&d=d

duf