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Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe) -- Ignore unavailable to you. Want to Upgrade?

To: Dan Duchardt who wrote (2120)	6/21/2001 9:46:51 PM
From: PoetTrader	Read Replies (1) \| Respond to of 2241

WOW!!!>.>Dan you're great...a wealth of info...you should come over to the covered calls for dummies thread...I think people would really appreciate your knowledge and insight. I have to say I agree with most everything you just wrote...but most of the stocks I'm buying and writing cc's on I'm in for the long haul...I think what you're trying to say is that I could make more money not being in as much of the position as I am...however, where I am at now -- being able to generate a little income and reduce cost basis -- is a helluva lot better than the way I used to play the market which was to stare morosely at my shrinking portfolio... In my fidelity account I can't buy in the money leaps and write cc's on them -- at least they don't let me do it when I trade online. Perhaps I should call them and see if that's available...-- I also do just buy calls outright and trade them as you described...I've just been having too much fun (for the most part) writing calls and making some nice premium...and I haven't lost money yet except on paper... All thanks and best, PoetTrader

To: Dan Duchardt who wrote (2120)	6/22/2001 12:38:05 AM
From: Dan Duchardt	Respond to of 2241

On June 7 you could have bought a JUL60 call for about $7. That is pretty expensive considering the stock had to go to $67 before you started to make any profit, but the worst thing that could possibly happen is that you lose $7 I should have been a bit more careful in making this statement. What I really meant is that for you to have a net profit at expiration time the stock would have to be above $67. If the stock had moved up quickly after buying the calls, you could sell them for a decent profit before reaching $67. I'm sure most people who have looked at options are aware of this, but since this is a thread for "newbies" I thought I should make the clarification. Dan