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.

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

To: Jerome who wrote (48672)	7/3/2001 1:26:06 PM
From: Ian@SI	Respond to of 70976

Jerome, I've tried to stay out of this. However,... 1. Covered call writer CANNOT change his mind and sell the shares affected by the Call without first buying back the call. 2. Covered call writer foregoes all profits beyond current price + premium less commissions. Writing calls now when stocks have sold off sharply increases the risk that one will be disappointed in short order. Its a great strategy during a period when the market or the stock is forming a base. One gets a nice monthly "dividend" while waiting for something to happen; but when it does happen, all but the nimble will miss out on the run. I see nothing wrong with a novice paper trading for a while before risking his assets. IMO, Ian

To: Jerome who wrote (48672)	7/3/2001 1:32:38 PM
From: advocatedevil	Read Replies (1) \| Respond to of 70976

As far as options trading goes, I believe every investor should at least try to obtain an understanding of the mechanics, as well as the pros and cons. Getting to know how to use all the tools in the toolbox is worthwhile IMO. Most importantly however, if you find you're not comfortable with options, fogeddabowdid! Fear can cause one to make mistakes that can easily offset any potential profit in the play. As far as paper trading goes, I pretty much agree with Jerome that's it's probably a waste of time. I don't believe there's any way to duplicate the emotions that one experiences when making a play with hard-earned money. Those emotions are an essential and critical part of investing and should not be overlooked. AdvocateDevil