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

To: Delfino R Zavala who wrote (3118)	12/11/2001 10:57:47 AM
From: LemurHouse	Respond to of 5205

<<This is the one of my objectives, but another was to get called on some of my tech holdings (after a nice strike price increase) and diversify into other nontech holdings.>> My suggestion would be to not let an options strategy drive your actions on your larger portfolio. It is easy to focus on the options and fail to pay enough attention to the larger portfolio risk. It may seem an obvious point, but I think with options it is extremely important to understand what you are doing -- particularly the risks involved and understanding all possible consequences -- and to have a clear knowledge of why you are doing it. Otherwise your objectives can change as events/prices unfold and you find yourself wishing and hoping, rather than executing. I.E., if you want to get out of an equity position, I've found its usually better to just do it, rather than let the decision be made on the basis of the relatively marginal income you might or might not receive from a related option. IMO, you should not be ambivalent about being in or out of specific equity positions -- if you don't have strong reason to be in the position, you probably shouldn't be in it. Don't let the options market make the decision for you. FWIW.