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: Uncle Frank who wrote (2972)	11/7/2001 11:51:04 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 5205

duf, Where have you been keeping yourself? You haven't posted here in two weeks? I've been following along without much to say LOL Not being a QCOM holder I don't have much to offer to the discussion of buying and selling the calls. I have a few rather badly beaten down positions I've been waiting to come back to where writing a few calls might make sense, but mostly I've been looking at futures as a general way to hedge my long positions. In principle it makes a lot of sense, but it's not a true CC strategy. Truthfully, it has not gone real well in that every time I sell a contract it seems to create a flurry of buying and I wind up losing some on the short, but I've done no worse and probably better than some of the CC writers who have let their short calls run deep in the money. What did you think of the repair strategy I discussed with PoetTrader? It was a good reply. I did not come across it until after I had replied to PoetTrarder's second posting that came as a reply to one of mine. We agree that in effect any action now is like entering the stock at these elevated prices. I took her statement of net cost around 30.00 to include the premium she collected for the NOV30, so we have a somewhat different take on where she stands at present, but the important question is the same.. is this a good place to enter? If one thinks so, then collecting a healthy time premium for a LEAPS call as you suggest makes sense. The potential gain is attractive, and it's a lot safer than taking a small premium for a near term call at this point. Dan