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

To: rydad who wrote (2179)	8/22/2001 11:23:26 AM
From: PoetTrader	Read Replies (2) \| Respond to of 5205

Rydad...I had put in a gtc order on qcom sept55's for 1.80 and it filled this am. So that's a done deal. I was going to take the order out and wait and see where the market goes, but those gtc cancel orders get you if you're not careful. Hopefully I will be pleased. I also sold puts on GE yesterday. Your amat scenario is interesting. It's one of the stocks I own that I'm holding onto. I have no idea how much qcom you already own, but maybe you could mitigate this play in two ways. Buy 3 of the amats to build more contracts and let the qcom go for now and just write cc's on it. That way you're not out 18000. if you get assigned -- you're only out 12000. just a thought. Good luck. PoetTrader

To: rydad who wrote (2179)	8/22/2001 9:05:48 PM
From: Dan Duchardt	Respond to of 5205

rydad, FWIW to anyone here involved in QCOM, there has been a substantial drop in QCOM premiums for September options since last Friday. That's great if you sold calls already, as many of you do here. I can't tell you if they are going to come back. Friday, the SEP65 put best offer was 6.00 with the stock selling at $62.5. At the close today, the offer is down to 4.30 with the stock closing at 63.75. That's a 1.70 move in the options (and I'm not counting the spread) while the stock has moved only 1.25. It's not quite that bad for the SEP60 puts, but the time decay in these few days has been outrageous. I have no way to predict where it will go from here, but today the implied volatility for near the money is averaging around 50%, and that is way off from where it has been recently The three month historical volatility of QCOM is 65%, and for July it was 81%. Of course all this shrinkage all happened while I was long QCOM options. I'm short now, so it will probably go back up <ggg> Dan