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


To: Uncle Frank who wrote (2627)10/11/2001 11:57:38 AM
From: JGoren  Read Replies (2) | Respond to of 5205
 
my timing stunk; getting killed on Oct and nov qcom 50's.



To: Uncle Frank who wrote (2627)10/11/2001 12:17:25 PM
From: Dr. Id  Read Replies (2) | Respond to of 5205
 
But isn't the volatility what creates good premiums on calls? If we wait for the market to go back into the doldrums, the premiums will also recede.

The question seems to be whether we've hit a near term bottom or not. If one thinks we haven't, selling calls into this is a good idea. If we have, then who knows?

Also, trying to predict our stocks into earnings reports hasn't worked well through this bear market. I don't think we've made one accurate prediction based on upcoming earnings reports in the last year and a half.

Dr.Id@IwillconsulttheQball.com



To: Uncle Frank who wrote (2627)10/11/2001 2:18:02 PM
From: LemurHouse  Read Replies (1) | Respond to of 5205
 
Well said. Except for some small selling this morning (which I'm already regretting) I haven't sold CC's for more than a month.

Quite apart from earnings, unfolding war news will continue to cause huge volatility. This morning there was a rumor that big banks in the middle east were buying dollars on the belief that Bin Laden had been captured or killed. One of these days that rumor will be true. I don't want to be short CCs when that happens.