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Strategies & Market Trends : Calls and Puts for Income -- Ignore unavailable to you. Want to Upgrade?

To: Mike Buckley who wrote (171)	4/14/2007 9:16:19 AM
From: Jerome	Read Replies (1) \| Respond to of 5891

Hi Mike... My preference is to buy the stock at the low end of a well defined channel. And then immediately write a covered call at the next higher strike...either one or two months out. I have learned over a period of time that to delay writing the covered call usually results in much lower premium. Many times I have purchased a stock in this so called channel, only to see it stay at the bottom of a channel longer than I expected. So the time value shrinks as I hold on. Often times I can use the same stock two or three months in a row.