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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 (1828)	8/8/2001 1:40:11 PM
From: Road Walker	Read Replies (2) \| Respond to of 5205

Dan, re: There is certainly a different mind set when you are not "worried" about being called out, and are actually hoping it will happen, but of course the evolution of any open CC position is the same regardless of your intended outcome. It goes beyond the mindset as well, to the strategy. If you are opening a buy/write, you attempt to make the trade at the lower part of the stock's range, where you are more likely to get taken out, and when the premiums are usually highest. Most covered calls writers, that want to retain their stock, try to write at the top of the range. The primary mindset difference is that the buy/write trader should be willing to own the stock at the buy less the call price, where the covered call writer (IMO) should be willing to lose the stock, if the trade goes against him. Pardon if this has been posted here, but it is a good, simple calculator for risk/reward of specific covered calls: optionstrategist.com John