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

To: 100cfm who wrote (2299)	8/31/2001 7:43:34 AM
From: Road Walker	Read Replies (1) \| Respond to of 5205

PT & 100, One of the inherent drawbacks of cc writing (on existing positions) is that as the market/stock goes down, the premium increases. So if you sell calls when the stock is high, and buy them back when it is low, on the premium portion of the call you are selling low and buying high. If you hold to expiration, this part goes away. I think the decision (closing the position or waiting to expiration) is based on your perception of the market, how far you are from expiration, and how far the stock is from the strike. (In a buy write scenario you attempt to sell high the premium portion of the call) John

To: 100cfm who wrote (2299)	8/31/2001 11:47:26 AM
From: PoetTrader	Read Replies (1) \| Respond to of 5205

My sentiments exactly!!...Actually I was doing some repair work this am...sold my jdsu and jnpr. Good riddance. I'm doing a combo of trying two paydays with Oct's in and out, selling good old fashioned cc's close in on some stocks I don't think have any chance in hell of raising to their strike price, as well as selling puts on bad down days on stocks I want to get into or add more position such as qcom. Good luck...let us know what strategy is working best for you...PoetTrader