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

To: Dominick who wrote (3251)	1/13/2002 9:50:12 PM
From: BDR	Read Replies (1) \| Respond to of 5205

<<So I just buy a stock CD, get my 3 to 5 percent interest immediately then wait 30 days to get my principle back.>> Just a word of caution if I may. In an earlier post you said you have been trading options since October. In that time frame stocks have been stable enough to give covered call writing the illusion that 3-5% a month with preservation of capital is a slam dunk. Be ready to use other strategies when the market conditions change. More importantly, be prepared to recognize when market conditions have changed. It hasn't always been so. I don't mean to come across as lecturing, but I applied covered call writing to the wrong market (10/00-4/01) and suffered a steep loss of capital during that time frame that exceeded the call premiums collected by several fold.

To: Dominick who wrote (3251)	1/14/2002 9:42:09 PM
From: PoetTrader	Read Replies (1) \| Respond to of 5205

Dominick -- it sounds like your a parametric trader such as myself. When I first started with the cc's I went front month out and then discovered I could actually trade in and out of options -- trying not to get too greedy, scalping and going for a couple of bucks here and there. It's worked nicely as well as my writing against my longer term holdings. I think my biggest problem is I just have too much going on. How many stocks do you follow? I'm trying to narrow my field, but it always looks like something's good around the corner. Anyway, all this is by way of saying that there are many strategies and many different perspectives from different investors with different goals and I find I learn from all of them. Best of luck, PoetTrader