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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Herm who wrote (5726)	10/31/1997 8:28:00 AM
From: sailor	Read Replies (2) \| Respond to of 14162

Herm Another post by you which I printed and put into my black book. Here's a new sight which offer some nice charting for free: cbs.marketwatch.com On the side, in the last 10 days I have had my oldest son do some CC and buying back of the CC during the dip and re CC the same stock. He made about $450 on LLY (don't pick this stock for CC it was just in his portfolio). IT was his first experience CC and with an online broker. He thinks this is heaven! Quite frankly percentage wise he did much better than the old man.<ggg> With the uptick of the Hong Kong market today may be another great trading day. Sailor

To: Herm who wrote (5726)	10/31/1997 8:32:00 AM
From: Douglas Webb	Read Replies (2) \| Respond to of 14162

I like the idea of writing puts at the bottom; I've considered doing it myself. You need to have some cash on hand, though. What are the typical margin requirements for naked put writing? I've also been thinking about how to decide which calls to write. You always say to write at-the-money calls, which makes sense because you get the most time-value that way. But if our TA is working well and we have a good feel for the top, bottom, and cycle time, I think writing an in-the-money call near the bottom might be a better strategy. You get a larger premium, which locks in your gain so far. If the stock drops as predicted your call can erode to nothing near expiration. If it drops further you've got more protection than if you wrote the at-the-money call. And if it goes up instead of down you've at least locked in all your gains up to the point where you wrote the call. This may work for writing the naked puts too. Instead of writing an at-the-money put, write an in-the-money put near where you think the top is going to be. This is riskier, though, since you may be forced to buy the stock at that price if it keeps going down. It may be better to write the put at the highest strike which is below your net; that way if you get assigned at least you lower your nut a bit. Thoughts? Doug.

To: Herm who wrote (5726)	10/31/1997 10:43:00 AM
From: Carl H. Gotsch	Read Replies (1) \| Respond to of 14162

Herm, You wrote: Also, I am starting to really lean towards adding naked PUTs to CCing! Several days ago I posted a short abstract from MacMillian on Options indicating that he actually preferred using puts to covered call writing since the two had equivalent profit graphs. Is this what you are doing? I would be grateful if you (or anyone else) could straighten this out for me, off-thread if you think it is something most people understand. (I got no responses.)Many thanks for your help and guidance. --Carl

To: Herm who wrote (5726)	11/2/1997 12:57:00 AM
From: jermoney	Read Replies (1) \| Respond to of 14162

Great cc candidates:FGII AVNT MANU NOI CTXS CORR EVI Check out the premies on these stocks of very strong companies.