Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Dr. Id who wrote (1019)	6/11/2001 2:24:12 PM
From: AMF	Respond to of 5205

Given that the Fed is meeting 26/27 June and the market is expecting a (small) rate cut, should we hold off writing July calls until then, hoping to get a bounce? Just wondering what is the way to play this... anna

To: Dr. Id who wrote (1019)	6/11/2001 2:32:44 PM
From: adairm	Respond to of 5205

<<You can wait for expiration, then wait for an up day and sell the July 65's.>> That's what I WAS going to do until today's dip. I don't mind being called out. But, I don't want to lose significant capital. <<You can buy back the June 65's and sell the July 65's (or further out than July for even higher premiums).>> I don't want to write farther out than front month because I would make more by selling front month two times in succession rather than one two month call. <<Why buy back and sell a lower strike and risk getting called at a loss when the market is so weak?>> I'd rather have small loss than a big loss! <<Dr.Id@thereareotheralternativestoo.com >> Ok, I'm all ears! Adairm@ElephantRUs.com