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 : YEEHAW CANDIDATES -- Ignore unavailable to you. Want to Upgrade?

To: PuddleGlum who wrote (23934)	5/4/2009 9:40:40 PM
From: Sergio H	Read Replies (2) \| Respond to of 23958

Good to hear from you PG. The covered calls play was brought up by Ken W. providing sanity in a difficult market. I told Ken that he reminds me of my old dog. We lived in Venezuela for a year. This dog loved to play in the terrace of our apt. and turn over a cockroaches on its back and then watch it jiggle until it righted itself. And then she would turn it over again. Simple play. Hours of enjoyment. Similar to Ken's simple strategy for profitable results.

To: PuddleGlum who wrote (23934)	5/4/2009 10:24:18 PM
From: Ken W	Respond to of 23958

Hi PG At the time that selling covered calls was first mentioned the market was very very scary...the idea was to mitigate some of the risk by having a short position against a long position for some downside protection..Now that there seems to be a somewhat fragile trend in place maybe selling CC's is not the best policy, unless you have a longer term view of things and are willing to sell the out of the money calls at least 4 to 6 months out, thus earning a considerable time premium. All that being said, congrats on your 50% gains!!! Personally, I am still selling calls with some out as far as Sept. but, way out of the money...if they get called away I make money both ways. DRYS Sept. 12's for example. OCNF 5's etc. In DRYS recent earnings report the CEO alluded to the fact that the company was well positioned to take advantage of the "long awaited consolidation" expected within the sector. Since ONCF is owned by his nephew I'm betting that ONCF is on the short list of DRYS first purchase. Today's volume on ONCF seems to indicate that something is afoot!!! Even with the dilution, ONCF turned 90% of their outstanding shares over 1.52...closed at 1.76 and over 2.00 in after hours. Ken