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

To: robwin who wrote (1882)	8/10/2001 1:01:56 PM
From: PAL	Respond to of 5205

Although I do basic buy-writes generally, I do like reading about some of the more complicated option strategies...please stay and provide your input...i for one, do find them good reading...if you can, please elaborate on the covered call play from hell.. Thanks Robwin. CC should only be done in an environment that is rather neutral ranging from slightly bearish to slightly bullish. If you go back to SI around 1 1/2 years ago and look for a post about a well-intentioned individual trying to help a financially distress lady, you would see a suggestion of buying elon at around 80 and double the number of shares on margin, and then sell covered calls on that. Compute the premium and see how much return that lady will get. Then the bottom of the market fell. Elon dropped drastically, and of course the option became almost worthless, but got margin call. It was not a pretty sight. Maybe some of the people on this thread could point to that post (unless it was deleted) since the post was praised by many and it became well known on SI community. Good Luck to All.