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

To: FaultLine who wrote (1884)	8/10/2001 12:04:58 PM
From: assetlogic	Respond to of 5205

Even though I am a newbie, I have been enjoying hearing about other options strategies. Although I must admit I have skipped a post or two with textbook commentary referencing these more complicated ideas. I am not ready for the mechanics, but it is helpful to me to understand where covered calls fit in the options universe with regards to risk and reward. Dan and Uncle Frank have made excellent commentary in this area, but they are not the only ones. Now on covered calls, I find it very ironic that the trades I do where I quickly change my mind after I input the oreder, get filled by the time I try to change them. The trades I have confidence in don't get filled at all. Perhaps it is selective perception on my part. Like Tony did yesterday, I closed out an August CC position this morning (on AMCC), with just one week remaining. For some reason I thought the stock was going to go back up past the strike (17.5) and I didn't want to lose the stock. It is in a taxable account and half the position was would be a small gain if called and half would be a loss. I don't mind the gain, but if it is a loss then I worry about wash sale rules. I want to then keep the write off on the loss, but I also don't want to miss out on picking up the stock again at a lower price (a month is long time to wait sometimes). Writing this has been therapeutic. Thanks all. And a speical thank you to whomever suggested early on in this thread to write motivations and expectations down on each trade. It has helped me considerably. TJ