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

To: Uncle Frank who wrote (4710)	1/27/2007 3:27:58 AM
From: Hepps	Respond to of 5205

Uncle Frank, Thanks I need the slap. Not so much hysterical as looking at all of the additional choices that options provide. In hindsight, I should have bought back the EMC APR 15s back last week for .15 (I sold them for .45 to begin with) and waited for a chance to resell either them or Feb 15s into strength. I've got some QCOM APR 35 Puts I'd like to buy back, but they just haven't gotten cheap enough. I'm in the green by a good bit, but APR is a long way off and I'd just as soon move on as sit on them until then. I closed out my QCOM APR 45 calls a while ago when they lost more than half of their value. Right now my portfolio is tough to write against, I don't own anything very volatile, and that's where the premiums are. I've got some MSFT Jul 32.5 calls that look on track to be called, I may write some MSFT 35s if I can find a day of irrational exuberance in the market. I'm stuck with July because that will give me long term gains vs short term- (I backed up the truck last July when people lost their mind and sold at 22) and this is one holding I have in a regular account. CREE RMBS and ISRG were all candidates for aggressive covered call writing. I've ruled out CREE and RMBS as I just don't like the underlying. I need to dig into ISRG as an option. (it's been mentioned on the gorilla tread). Trading at 95 today, the Feb 100 is going for 3.84; even with commissions we're talking 4% in 20 days if you don't get called and 9% if you do. Obviously very volatile, could be trading under 80 or over 110 by then, I will look at my McMillian to find additional insurance strategies like buying out of the money puts. Hepps