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

To: Dr. Id who wrote (2630)	10/11/2001 12:42:00 PM
From: JohnM	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. Id, I, of course, have no idea what Frank meant but his comment reminded me of something I keep, rather unsuccessfully, telling myself. Don't trade the market until the trading ranges are reasonably stable. They ain't now. And that's my mistake. Just too eager, greedy, dumb, whatever. John

To: Dr. Id who wrote (2630)	10/11/2001 1:08:27 PM
From: Uncle Frank	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. True, but personally I don't consider current premiums rich enough to compensate for the risks. I've been writing cc's all year with the firm belief (prayer?) that my underlying positions would recover sooner or later. This is later, and I'm not going to cap my recovery prospects, particularly during earnings season. jmho, uf