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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: Linda Kaplan who wrote (6221)	12/21/1997 1:26:00 AM
From: R. Gordon	Read Replies (1) \| Respond to of 14162

Linda, I'm sorry about your losses. When you sell covered calls as you did with VVUS, should the price of the stock go up by expiration - you keep the premium --- take the money and run. If you own tech stocks, there is a chance that in Jan. and Feb. the market could come around again as institutional investors look for new places to put their money. If the price of the stock is above you net cost basis, you could consider writing calls or buying inexpensive puts. Good luck, Richard

To: Linda Kaplan who wrote (6221)	12/21/1997 10:39:00 PM
From: Philip B. Reitano	Read Replies (2) \| Respond to of 14162

Linda, Another plan of attack which has worked for me is; VVUS bought the Jan 12.5p because the stock still looks soft to me. If it drops some, I will then sell deep in the money puts, Jan 22.5p. and a cheap upstrike call incase the stock gets it together. Maybe 17.5c for Jan ,March or April depending on the premmies. The object is to leg in more than the spread, which would be 10pts in this case and maybe enough to buy the cheap calls. Happy Trading, Phil