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

To: Road Walker who wrote (1984)	8/14/2001 11:18:44 AM
From: rydad	Read Replies (4) \| Respond to of 5205

John, Thanks for your input. "Stock with low downside risk also have low premiums. The second quality I look for in a buy/write candidate is a stock that has a lot of intermediate term volatility. This provides good premiums. SEBL is my current favorite." I am aware of this. My intention was to theoretically buy-write to get a return better than a bank CD and with very low risk. I would be content to receive a measly 3% per month on part of my cash and then write more agressively with some of the shares that I already own. But now, someone was writing on the OB1 thread about a similar strategy by selling puts instead. He said it was better in a declining market like this. I'll have to contemplate it. So much to keep up with.... Thanks again