Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: JohnM who wrote (2515)	9/25/2001 3:22:04 PM
From: DiB	Read Replies (1) \| Respond to of 5205

John, I think you're now witnessing the new trading ranges settling in. With the earnings reports, the market may move a little higher, but it will not be a straight up move. Unless you're concerned about taxes, I would not be afraid to be called out on covered calls on your core holdings, especially if you're picking the strike further OTM. To get called out on those, the advance of the stock prices would have to be more than 10%, and this will bring some profit taking. By that time, the calls would be worth much less, so you'll buy them back... If I can get above 5% return on a call for second or third OTM strike in the current month, I'd definitely write it... JMHO.