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


To: Jerome who wrote (4348)3/11/2006 6:46:19 PM
From: rrufff  Read Replies (1) | Respond to of 5205
 
Excellent advice - I've a large position in XOM, which I've treated passively over the past few years (luckily it seems) and only recently decided to manage it actively. Your advice plays well with thoughts I've had over the past month or two.

Your advice to initiate after a modest sell off - are you suggesting that the premium value is generally greatest at that point? (all other things being equal.)

Thanks again.



To: Jerome who wrote (4348)3/12/2006 2:38:04 AM
From: Uncle Frank  Read Replies (1) | Respond to of 5205
 
>> My preference if to use large cap stocks. A good entry point ( after a modest sell off) seems to work best.

Is that in reference to a buy-write strategy? If not, you'll need to explain in detail, because I don't understanding why you'd wait for a dip to write covered calls against equities you already owned...

duf