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 : Contrarian Investing -- Ignore unavailable to you. Want to Upgrade?

To: bluesongs who wrote (409)	10/2/2006 10:06:12 AM
From: fedman	Read Replies (1) \| Respond to of 4080

I have experimented by writing 3 uncovered out of the money calls on the following stocks/indexes: PNRA SBUX XHB - Index of homebuilders. I have had to buy the underlying or buy out the calls with PNRA and SBUX. The homebuilder is still working well for me. There are a couple of disadvantages to the uncovered call strategy. One is that the most you can make is the premium of the call, unless you go in-the-money. Second. You've got to watch them like a hawk, which I wasn't so prepared for one day when I went to lunch and PNRA took off on no news. Anyway. Just my novice's experience with this strategy.