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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: David Beckett who wrote (5987)	11/29/1997 10:48:00 AM
From: Patrice Gigahurtz	Read Replies (3) \| Respond to of 14162

David: I did thanks, hope yours went well too. Regarding calls I've got to change my call writing methods. Later part of last week bought back my CCs for a profit and sold the underlying stock. However, I feel I'd made more $ if I didn't write the CCs in the first place. For example, several months ago I bought a stock and saw it quickly pop up. I had some margin debt so to lower the latter I sold CCs down the road for 6mos. Sure I did fine on the calls but during the interim the underlying stock reached levels I would have loved to have sold the stock for. But I couldn't as the CCs would have cost too much to buy back. So guess what happens ? Asian woes burst and the underlying stock drops back to almost where I paid for it in the first place ! Sure, I collected the call $ but big deal, I missed the golden pie. Hence, here is my new CC policy. I'm going to sell CCs only approaching three weeks prior to expiration. Thus no more way down the road (ie, 6 mos.) CC writing.