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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: daryll40 who wrote (14130)	12/3/2003 6:10:38 PM
From: Dominick	Respond to of 14162

Hi daryll40: How would YOU write covered calls on stock you own for the long haul? . Trading over the years has taught me that the long haul will be equal to "as long" as the stock does what I want. Buying and holding no longer makes sense me. Before I buy I determine how much or how little I would like to make. Then I look for overpriced options,ITM or OTM. Then I buy cheap OTM puts because I learned not to trust individual stocks. It's chicken one day and feathers the next. Yes that is the main risk. But if the stock does slowly drop to my break-even price, I'm out of the call and stock. But I may hold the put. If it rises instead I let it get called, regardless of my tax. But if I must hold the stock, I would sell calls when the stock looks like it hit a significant resistance area. If it continues up I'd buy the calls back and take the loss. Dominick