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

To: BDR who wrote (3755)	5/22/2002 9:22:38 AM
From: BDR	Respond to of 5205

GMST: Straddle, fence, put, call? I bought GMST at 10.08 to replace some of the stock that had been called away at 10 and sold June 10 calls on my entire GMST position for 1.25. 13% return if called away. I also had SEBL May 22.5 calls in IRA accounts that were exercised and May 25 calls in taxable accounts that, obviously, weren't. I replaced the stock called away at 22.52 and covered with Nov 22.5 calls for 4.50. 24% if called. Sold Nov 25 calls in the other accounts for 3.60. Actually, trading in all my accounts is tax free at the moment as I work off the capital loss hangover from 2000-01. In those accounts where capital preservation is more important I have been using lower strike prices. Actually, capital preservation is becoming important in all cases and so I have been writing a lot more at- or in-the-money calls than I used to.