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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 (5914)	11/20/1997 4:25:00 AM
From: Jess Beltz	Read Replies (1) \| Respond to of 14162

Herm, I am new to this thread (having just discovered it and only having been an SI member for about 3 months) and I would like to pose the following question(s): (please forgive me if this has been addressed before) It seems to me that the best candidate for a stock on which to take a covered-call position is (1) one with a lot of volatility (to elevate the amount of the premium that you get) and (2) one that you expect (with substantial probability) to trend generally upward over the short to medium term. Maximizing profits on such a position (at the expense of increased risk) would involve taking the long position in the stock with margin (in part or whole.) Are there dangers I'm overlooking (other than the obvious one of a decline in the stock price) such as outstanding short interest? What are the best tech-stock candidates on your radar screen at the moment? jess