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

To: PoetTrader who wrote (3309)	1/21/2002 11:17:28 PM
From: Dominick	Read Replies (1) \| Respond to of 5205

HI Poet trader: I'll be glad to tell you about my "written list" because it has gotten me out of trouble a few times when I was trading in and out of options short term. And if it helps others so much the better. It's purpose is to remove as much emotion as possible if things heat up and instill confidence because I know what to do next. The strategies on the list depend on whether the stock is a core holding and I want long term returns or short term for flipping. I made a crude spreadsheet where I plug in the stock prices and the option prices, (comm. included), and it would show the profit, loss, break-even and per share cost basis, (up to 5 sells & buy backs). I want to know where B/E was at various combinations of stock and option prices for my exit. So I generate a list of up to 12 various stock/option price combo's that equal B/E. The price intervals may be in 50 cent increments for the stock and 10 cent for option prices. My list also contains some puts in case a stock gets away from me like HAL did. If I wanted to hold a stock long term I would list the price where I would dollar cost average and write. The calls and puts are entered on my brokers trading platform so all I have to do is hit a couple of keys and I'm in or out. Hope this helps, Dominick