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

To: PoetTrader who wrote (3008)	11/11/2001 10:42:34 PM
From: Uncle Frank	Read Replies (1) \| Respond to of 5205

>> I tried to roll out to Jan 03 Nvda 50's per Uncle Frank's advice and still have not gotten the trade through... PT, I'd like to point out that I presented you with 2 alternatives I thought might be useful, but didn't make a recommendation. Now that you bring it up, if I were in your position, I would open door #1. 1. Take your profit on the trade as if it were a successful buy/write and move on. You'll receive 33.30 on a 30.00 investment, which is a handsome 11% return, and will have cash in hand to buy nvda or something else on a dip. My bride went through something similar with extr, and opted to be called out. It wound up saving her a bundle, as extr retraced shortly thereafter. bwtfdik duf@i'mapilgrim,too.com

To: PoetTrader who wrote (3008)	11/12/2001 9:00:45 PM
From: Dan Duchardt	Read Replies (2) \| Respond to of 5205

PoetTrader, So here's a question to you and the thread... at what juncture do you usually start making repairs? As soon as you've hit your strike price...roll out and up one or two months out?? Is there a rule of thumb?? The rule of thumb I picked up somewhere along the line is to repair at the breakeven point for the call buyer, which is the sum of the strike price plus the premium paid (in your case received) for the call. If the price gets to that point, and you are still bullish on the stock, at that point it may even make sense to just roll up in the same month series. Given your belief that a pull back was in the cards, that would not have made a lot of sense. At this point I see no reason to rush into anything. Your downside risk is minimal, and the closer you get to expiration the better you will do if you decide to roll out. Who knows what will happen in the next couple days in this environment? Dan