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

To: Dan Duchardt who wrote (1578)	7/21/2001 2:40:52 PM
From: Andrew N. Cothran	Respond to of 5205

Thanks, Dan for your careful and statistically correct response to my recent posts. "How much does the recent stock trend matter in estimating the potential size of the Move?" I use intuition more than statistics in my speculations. I think that the recent stock trend is very important when deciding on an option trade. That is why I tend to give up a few dollars in order to get a few dollars. I looked at the QCOM 60's very carefully. I calculated the relative value of selling the 60's vs selling the 65's. I concluded that the few extra bucks available from the sale of the 60's would in fact produce Maxpain. And since I try to avoid pain, I came to the conclusion that the 65's were the safer way to go, especially since I really did not want to give up my long-held stock. So I was willing to leave some money on the table so that I could, hopefully, walk away with some in my pocket without, in the meantime, being scalped. "What would have happened without the rally Thursday?" I probably would have sold the 60's feeling relatively secure that 'the powers that be' would move the stock easily toward the Maxpain point. Interesting to exchange notes with you. Let's keep it up. I bring intuition. You bring statistics.