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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 (3991)	10/15/2002 10:59:38 AM
From: LemurHouse	Respond to of 5205

<<<Does that mean you think we're into a sustainable run, >>> I'd like to think so too, but I'm not willing to make that call yet either. I think the fundamentals have been shaping up for a good run for some time now, but I don't think we can have any sort of sustainable market rally until we get some clarity on Iraq. While I think its almost certain that there will be a military conflict, and that the market will surge when that actually starts, I think such action is still several months off. In the meantime, anything can happen. So operating on that theory, I'm unwilling to sell calls that are more than a two or three months out, and the premiums for nearer term calls generally haven't been high enough for me to justify the risk of beeing called out of positions that I'm optimistic about once the rally finally gets here. Bounces like we are having this morning let me sell a few calls, but I'm trying to be conservative. The past few months I've been writing as many puts as I have calls, and doing some stock buying. Generally speaking I'd rather be long than short right now. I do miss the income that I'd been generating from CC writing though. Maybe I'm too conservative. FWIW PS: I don't want it to sound like I am eager for action in Iraq, because I am not. But I do think that uncertainty over the Iraq situation is the biggest factor affecting the market right now, and so I plan accordingly.