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

To: Dr. Id who wrote (4403)	4/16/2006 8:22:57 AM
From: Jerome	Read Replies (1) \| Respond to of 5205

Hi ID...I have read that book and others several years ago. The best strategies for covered calls are the simple ones. 1) I pay attention to market trends. Like now Techs are in a rally mode. 2) I try to identify stocks within a channel (energy stocks) 3) Have had good results in catching falling knives and then writing covered calls against them. (eg. INTC,GM,AMAT,DELL) I do watch for good companies that are terribly out of favor and have a relative strength of less than 7. (3 to 5 is ideal). Its difficult for a stock to maintain a RS of 3 for very long. (provided that it is not going out of business) INTC is such a stock. Good overall earnings but well hated on the street. Its a much safer call write than AMD. I'm open to suggestions on other stocks in this category. Thanks, and Happy Easter........Jerome