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

To: Dan Duchardt who wrote (4210)	4/16/2004 1:20:10 AM
From: Jon Khymn	Read Replies (3) \| Respond to of 5205

Hi Dan, I heard you are one of the smartest person in this thread, so I read your post very carefully. Guess I didn't make my point clear about writing calls when the stock price drops... Fisrt of all I plan to sell(write) calls for one month expiration term. Second, if RMBS drops to 15 by 3rd week of May, then I would sell June 15 Call NOT June 25 call. (Of course, if RMBS is at $15, June 25 will be more like 10 cents or so. But don't you think June 15 call to be at least one dollar?) you could reduce your cost by buying back the 30s for about .75 and selling the 25s for about 2.10, reducing your cost to about 24.90. That would be a defensive move Now that's a very good point! Never thought about that. Think I'll might just do that tomorrow. Thank you... Regards, Jon