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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 (6199)	12/19/1997 4:28:00 PM
From: Herm	Respond to of 14162

Hi Greg, You stated it in your own words which parallels my opionion. For the record, I generally trade at least 500 shares min. (5 option contracts) because of the reason you indicated. The option commissions take a bigger bite (with small amounts of CCs) and reduces you margin for making a profit. Sneaky Pete is a small trade off for balancing between the risk of having the stock turn on you. Thus, you would have less dollars exposed to that risk as an entry point. Once you are in you can better manage your CC rate of return. Provided you keep an accurate record of your transactions. In other words, your net cost basis (nut).