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

To: Stock Farmer who wrote (1145)	6/21/2001 1:35:16 AM
From: Uncle Frank	Read Replies (1) \| Respond to of 5205

>> I think we crossed wires... you seem to be attaching undue importance to the aspect of having the shares called away. Then we've crossed wires indeed. Perhaps if you review the thread archives you might come to a different conclusion. Almost all of my covered calls are conducted in my ira, so being called doesn't trigger a taxable event, avoidance of which is the main reason for repairing covered calls. Additionally, as I've stated on several occasions, I feel the very nature of the current market precludes stocks from "running away". Being called does not trouble me in the least. It's happened numerous times this year, and in most cases I've profited from it. But since I am a ltb&h investor, I conscientiously re-establish my core positions. >> I'm talking about a covered call scenario using a synthetic long position when you happen to have cash, and an actual long position when you do not. An interesting theory, John, but I'd think that you'd want to substantiate its effectiveness before recommending it. How about paper trading for a few cycles and then posting the results? duf

To: Stock Farmer who wrote (1145)	6/21/2001 1:36:25 AM
From: Dr. Id	Read Replies (1) \| Respond to of 5205

I don't get it that you don't seem to get it. John I seem to get it. So, for example, I sold May NTAP 15's, which were about to be called away with NTAP at 23. I bought my calls back at a huge loss. So, instead, you're saying that I should have let the shares be called away, and sold Ntap 22.50 puts for June? And waited for it to come back? Or sold a higher strike price puts? Since NTAP retreated so much, it seems that I would lose either way, but a bit less with having sold the puts. And if NTAP had continued to climb, I would have then sold a higher strike price the next month? I guess I'm still trying to get it... Dr.Id@thoughitmakessomesense.com