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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: Douglas Webb who wrote (5729)	10/31/1997 11:22:00 AM
From: Vol	Respond to of 14162

doug and others, i like the idea of writing puts at the bottom. pick a price you would buy at then sell puts at that price. one advantage over ccing is that at the bottom you immediately get a premie and only having one commish. this strategy could hurt during bear market or right before a correction, but if you bought the stock before either, you would get hurt and get NO PREMIE! McMillan says puts are better b/c they require less margin and at the bottom puts are more expensive b/c neg sentiment. of course, calls are higher at the top b/c bull fever. seems like two good ways of riding these bucking broncos for max profit. i have yet to write a np, but will soon if market stabilizes. i've considered adjunct strategy for both cc and np selling: 1) sell np on dips and use some of the premie to buy OTM calls. also can buy stock. 2) sell cc on run up and buy prot puts with some of the premie. plus buy back np or just let it run out at expiration. these are all variants of herm and steve strategies. maybe we could call them the "Heve" (heave) or "Sterm" (storm) maneuver <ggg> vol