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

To: Herm who wrote (5838)	11/12/1997 7:24:00 PM
From: Douglas Webb	Read Replies (1) \| Respond to of 14162

So during this little mini-bear market, you've been writing at the money covered calls, waiting for the next dip, and buying them back, right? I covered my calls after the first big drop, and haven't written any since then. I keep expecting the recovery to happen, because it does keep happening. I'm losing, though, because it keeps reversing again. What's your thought process, and what are you looking at, when you decide "Okay, I'm going to sell calls now" and "Okay, I'm going to buy these calls back now." It can't be the TA we usually follow, because that's screaming "Oversold! Buy Buy Buy!" even as the prices continue to drop. What are the indicators for this sort of market (which, God willing, will be over by the time you respond to this message!) Doug.

To: Herm who wrote (5838)	11/12/1997 9:45:00 PM
From: Spots	Read Replies (2) \| Respond to of 14162

Good not to listen to gloomers and faddists, but I have to ask myself just what I am too. That's what I'm reflecting on now. We should be prepared for eventualities, which I perceive this thread started out doing but has drifted toward predicting. No matter how you predict, you are a member of some group of predictors (which, when it's someone else, we call by names such as gloomers or faddists). This is an impersonal "you" BTW. Definitely includes me. I started out (reentered) ccing with PPs and preparation to be wrong. That worked. Now I've dropped the ball. I'd like to hear people's thoughts on how to pick the ball up again. We're all guessing at some level, of course, though some guess with better insight than others. My insight is minimal, which I'm trying to overcome. So, thread, a challenge: Suppose things work out for the worst. At each point, I mean. How do we cover that eventuality? At what cost? Etc. Maybe these aren't the right questions. If not, what are? Specifically, Herm, in your best opinion (and your guesses are better than most I observe), suppose this isn't early house cleaning but something else -- whatever's worst. What then? This is only an example of what I'd like to see us discussing, but an important example IMHO. Regards

To: Herm who wrote (5838)	11/12/1997 10:16:00 PM
From: RCVJr	Read Replies (3) \| Respond to of 14162

Herm - I have done a little chipping away with VVUS as well but am concerned about writing a CC and, with my luck, one of the big news events we are waiting for will be announced the next day and I'll find myself buying the calls back at a higher price. Is it just a risk one has to take in this market?