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

To: Jerome who wrote (4411)	4/21/2006 9:27:46 AM
From: alanrs	Read Replies (1) \| Respond to of 5205

>This covered call business is just like astrology.< I generally think of it as waiting until I see money lying on the ground and then going over and picking it up, although after this last week it's starting to feel a little like 'Whack-a-mole'. I warm up to new stocks very slowly. I did look at your list and of those you mentioned, only TXN registers as something I keep in mind as something I really should look at. My quick take based on a glance at the chart supplied here at SI (without averages, bands, channels, etc.) is as follows: AMAT $17.50 ALTR $20.00 TXN $31.00 TER $15.50 HPQ $33.80 looks ok I then did my normal 3x3 grid on HPQ, although there is no June/July chain yet, so that wasn't particularly useful. Looks like buying HPQ at 33.80 and selling the May 35 for .90 might make sense. Protected down to 33 and a 6.1% return if called. I would have to be ok with owning HPQ at $25 to do that, and don't have any feeling for that. I might be willing to sell a put or two on ALTR &/or TER just to get my feet wet, if I knew something about either company. What makes you favor these? Myself, I'm doing the rinse and repeat part of my routine. Same old, same old. ARS

To: Jerome who wrote (4411)	4/21/2006 7:44:00 PM
From: Uncle Frank	Read Replies (1) \| Respond to of 5205

>> Since options expire today, what stocks and positions look good the coming month... This covered call business is just like astrology. It is if you have to search for a new vehicle each month. I take it you're playing the buy-write variant of the covered call game. That's always a crapshoot. Imo, the only way you can do covered calls scientifically is if you write against long term positions... stocks that you've followed for a while. Once you establish the trading channel, you can do a better job of identifying write and cover points. Jmho. uf