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

To: rydad who wrote (2144)	8/20/2001 12:22:32 PM
From: Uncle Frank	Respond to of 5205

>> Do I write now while prices are low or wait find what happens tommorrow after the rate cut? If you think prices are low, it is probably not the time to write calls, except in the case of a buy-write play where, as previously noted, it is best to write when the underlying is in the lower end of its range. >> I don't want too much time value to expire. That's completely under your control. You could wait for a peak, and then write October, November, or even further out. duf

To: rydad who wrote (2144)	8/20/2001 12:42:55 PM
From: Andrew N. Cothran	Respond to of 5205

rydad: Here's my take. The market has already factored in a .25 rate cut. Current prices reflect that factor. The market will be positively (I think) surprised with a .50 percent rate cut. That is, if the .50 cut will not spook buyers into believing that things are even worse than they are. So, what do we do? I sold QCOM September 65 calls this morning for $3.60. I will hold there until tomorrow. If QCOM rallies, I will sell more calls at higher strikes. If it stays about where it is now, I will sell some October 65's at about 6.00 if I can get it.