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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (48669)	7/3/2001 1:07:27 PM
From: Jerome	Read Replies (2) \| Respond to of 70976

Kirk... I strongly disagree with what you have written about covered calls. 1) Your statement about paper trading.... In my view this is a absolute and total waste of time and energy Here is why... when an investor paper trades, he or she will take chances that they would never take if they were using real money. (after all its only paper). Paper traders that I have watched, repeatedly forget to include the commissions in a trade. Fuzzy Math I call it. Paper traders are downright careless Nothing sharpens your senses in trading like a good loss or good profit. Covered calls are more conservative than just buying the stock and hoping for short term appreciation. The covered call writer that buys AMAT today at 50 and writes the July 55's for 3 is saying ....I'm taking no chances with this stock. The person that does not write the covered call is making a gamble that it will go up by the third Friday of this month. BWAC.... absolutely nothing is lost on a covered call until the position is closed out. Just like ordinary stocks. Regards, Jerome