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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (35249)	8/27/2009 11:49:43 AM
From: E_K_S	Read Replies (2) \| Respond to of 78744

I have been looking at writing covered calls on several of my utility stocks which have moved higher. These include SE, CNP and maybe BKH. The options are thinly traded (especially BKH) and it's hard to get the fair value (based on Black-Scholes). I had sell orders in yesterday and missed them by $0.05 and with today's small sell prices offered are even lower. finance.yahoo.com My preference is to hold on and not sell but collect the dividend income. I don't like to trade these but writing covered calls has worked out well for me in the past. I am more apt to close a position if the dividend is small or the xdividend date has recently past. When I close out a position I tend to not buy back in and end up leaving lots of money on the table. I try to keep my positions at amounts where I can sell at least five or more covered calls thereby hedging the position with a covered call. Otherwise, if the value proposition is no longer attractive (both short & long term) it is sold. EKS