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

To: Gary E who wrote (3816)	6/13/2002 10:53:36 PM
From: Uncle Frank	Respond to of 5205

Fundamentals is a broad term, HG. Imo, the interesting ones relate to sustainable competitive advantages, not balance sheet statistics. At any rate, our investing windows differ so greatly, I doubt if we'll find common ground for selection criterion. Regards

To: Gary E who wrote (3816)	6/14/2002 1:27:04 AM
From: Dan Duchardt	Respond to of 5205

Hal, Your concern about buying stocks for covered call writing in this environment is understandable. A good way to mitigate risk of loss in the underlying shares is to buy long term options instead. There are a lot of stocks that are priced way below recent highs that have a good chance of recovering and have LEAPS available at a fraction of the cost of the stock. With a bit of luck, after a few rounds of selling near term calls against long LEAPS calls your risk can be reduced to nothing. While there is certainly risk that a near term dump will put you in negative territory you will never get out of, that risk is a lot lower with LEAPS or long term calls than with the stock itself. Of course this is a bit outside the focus of this thread, but if traditional CCs are not right for you, there are alternatives. Dan