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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: Greg Higgins who wrote (6105)	12/12/1997 9:28:00 AM
From: HF	Read Replies (1) \| Respond to of 14162

Thanks Greg, That is what I will probably do if I don't get assigned first. I am also going to average down by selling more puts, say Jan 10, or 12.5 and buy puts with premium. What do you think of this strategy. Any stock that I end up with will be used in a covered call strategy such as yours. Hank

To: Greg Higgins who wrote (6105)	12/16/1997 3:10:00 PM
From: fellowfool	Respond to of 14162

Greetings all. I have recently discovered this thread and have been going back a bit and reading past posts. Greg- what is wrong with the idea of rolling out by selling longer puts, but at lower premiums and using the premium from this sale to buy back the the closer puts that are in danger of getting exercised? I have a similar situation to HF's and find it very difficult to buy back my puts. My position is in LWN and I wonder why I have not been assigned. Up until a short time ago, I was ready to accept being assigned. In the meantime another position in NN has deteriorated (and been assigned) and my overall cash postion is not as good. Where there are LEAPS available (not in LWN), it especially seems feasable to roll out short term positions into the LEAPS. What do you see as the negatives or risks? Also, I was reading (perhaps on this thread or another) that calls are not neceassarily assigned until the last possible day because it is more worthwhile for the call holder to "hold" as long as possible, unless the stock pays a dividend. Does a similar logic apply to the put holder? Is this the "promise of the future growth of the stock or the expectation of a further drop" that you speak of?