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

To: Uncle Frank who wrote (3972)	10/10/2002 3:19:30 PM
From: fmikehugo	Read Replies (4) \| Respond to of 5205

>a decision I'd care to make for anyone uf - Please pardon any appearance of exasperation :) but I do know better than to ask for recommendations of individual stocks, or for anyone to make a decision for me. It's simply a question of finding the right metric to use in determining a stock's potential for high premiums on covered calls. It is probably a stock's beta, or some variant thereof. I've looked on many sites that specialize in CCs and have found only IV, which appears to apply to a specific option, and not to the stock itself. Maybe the answer is "there isn't any" but before I give up I thought I'd ask the question on a CC forum. Peace Mike Hugo

To: Uncle Frank who wrote (3972)	10/10/2002 9:54:54 PM
From: BDR	Read Replies (2) \| Respond to of 5205

I would side with dUF. In this market it is pretty hard to make a case for covered call writing when the long equity position keeps eroding so fast. To me it makes more sense, if anything, to be doing the opposite. That is, short stocks and sell puts against the position, or buy puts and sell a lower put (put credit spreads). Cash, spreads and a few shorts (in decreasing order) are most of what I have in my account at the moment I haven't posted here for four months because I finally gave up on most long positions and CC writing in June. The only long I have is XLU. Pays about 5% dividends and if I buy when it drops, as it did lately, and sell just ITM calls 3-4 months out when it runs up a bit I can get more than 5% return in 3-4 months if called and collect the dividend in the meantime. No home run but I am thankful for any crumbs in this market.