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

To: Uncle Frank who wrote (1832)	8/8/2001 2:35:45 PM
From: Road Walker	Read Replies (1) \| Respond to of 5205

UF, re: Well put, John, but it doesn't address the the small set of folks who have captured extremely large gains in long term positions and won't accept a result that would trigger a taxable event. People in that enviable position tend to wait for peaks, sell further otm, and use repair strategies if they find themselves in danger of being called. And it also doesn't address the buy/write trader who finds himself with a stock that falls off a cliff (been there). At that point the repair is to buy back, and sell lower strike calls. Works fine with a slowly declining stock, but with one that really tanks, nothing can be done. You involuntarily become a long term investor. It's funny how the same essential trade (buy/write & CC write) has exactly opposite strategies and goals. Although I do buy/writes, I also sell calls on long held positions when I think they have run ahead of themselves. Sometimes I get confused, "what was I trying to do with this one???" I guess that means I qualify as a dummy, the price of admission. BTW, I'm covering most short call positions today. John