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

To: Dr. Id who wrote (1788)	8/3/2001 12:17:20 PM
From: edamo	Read Replies (1) \| Respond to of 5205

dr id.... the closer expirations will move more in line with the underlying as the time factor erodes....until it reaches an intrinsic value... should you make the wrong call on direction, and prefer a bit of luxury of time, with a lower risk, and be willing to accept a lower return, then you can fall back on the same strike with a longer expiration which will move a bit slower, and give you time to see how many fingers you have left...once your initial direction call proves valid, you can close the longer position and move to a shorter term. keep in mind that when i use the word direction it only means raising trend/put sale, falling trend/call write... as i have posted, i'm not an advocate of rolling forward a covered call, which is akin to chasing a stock, especially in the current market, until a clear trend has been confirmed.... the ntap examples of the last few days should bear out the risk in doing so... stocks never go straight up, even though for a few years they seemed they would....they make incremental moves between supply and demand... if i'm not clear please ask...somedays i confuse myself...