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

To: DiB who wrote (1165)	6/28/2001 2:51:32 PM
From: DiB	Read Replies (1) \| Respond to of 5205

All, as a everyday lurker and not being very experienced in option trading, I'd like to express my extreme gratitude to everybody on this thread for the great education and help you all provide. As for trades: 1) bought 500 newp for 22.45, plus commission of 20$ sold 5 july 25 calls for 2.05, plus commission of 29$ newp is at 26.5 now 2) bought 200 digl for 34.90, plus commission of 20$ sold 2 july 40 calls for 2.30, plus commission of 29$ digl is at 35.10 now. After thinking a little bit about what to do if the market rallies and I find myself in danger of getting called out, I decided that I'll just let the shares go: sure 20% (newp) and 21% (digl) minus comissions in less than a month are good enough returns, even though according to some sharks over there on Wall Street, "greed is good" <g>. If the market tanks, I'll let the calls expire and re-evaluate the situation. Am I way off base here, and there are "textbook" situations when you absolutely "must" roll out or buy back calls? Thanks a lot, -DiB