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

To: rydad who wrote (2124)	8/20/2001 12:10:23 PM
From: PoetTrader	Read Replies (1) \| Respond to of 5205

Rydad... I was lucky and got .85 on my csco on July 26th...about a week after last expiration. My best and "dummest" cc was on qlgc. I purchased for 34. Thought I'd do a buy/write at 35.00 for a 5.4 premium on 6 contracts. It was a nice payday of approx 3200. Then we had a few up days and qlgc went above 40. I thought well, I'm not greedy...I'll just take this nice profit plus the 600 I'll make on the way out the door. But then the market dumped and I decided to close the call out in efforts to go for a second pay day. I closed out at 4.4 for a net of 539.00 Shortly thereafter I wrote qlgc aug40's for 1.4 for around 800. My two pays yielded me 1300+ but had I just kept the original plan I would have made 3800. I've had the opportunity now to look at all my "second pay day" plays and can only describe them as underwhelming compared to what the original cc would have brought in. However some of these were to make sure I didn't get called out of the stock as well... Just wondered what other people have experienced going for a second dip. Also I hear a lot of people referring to certain premiums as "not worth it"...I have now written in the last week to scalp on alot of my positions and have found I'm able to make another 1000.00 or so. Hey those 52.99 premiums all add up in the end. Best to you rydad...good trading. PoetTrader