Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Uncle Frank who wrote (4350)	3/12/2006 8:32:12 AM
From: Jerome	Respond to of 5205

Uncle....I could have written in a clearer manner. If I own a stock and view it as a good covered call I will wait for a good one day spike to write a covered call. Friday was such a day. The DOW was up about a 100 and CHK was up about .65 to to 30.53. I used that opportunity to write the april 32 1/2's for .65. If I do not own an equity but consider it a good potential stock buy and covered call write then I would wait for a good one day sell off to buy the stock and then write a covered call at the next available out of the money strike. Keep in mind that on any given day a stock can fall 4 to 6% and the option premium will not fully reflect that much of a discount until the next trading day. Jerome