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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 (6409)	1/14/1998 9:15:00 AM
From: Tony D.	Respond to of 14162

Greg, I bought into CREAF at 17.75. That is why I chose the 17.50 number. I have changed my stadgey since last Summer, when I first got into the market. Before I buy a stock now, I check the premiums on the next month out. The return on the Feb. 17.50 was about 13% when I bought CREAF. I did not sell the calls because of earnings being reported next week. If it hits 20 today I may sell either the Feb. or Apr. 17.50, depending on the value of the time. Is it worth $1 to sell the Apr. rather then the Feb? As far as the put is concerened, Jim on the "How to properly exploit the Drop" thread has a philosphy of buying deep in the money puts, cheap, and keeping a close stop/loss on them. It would also give me a cheap form of insurance. (Especially after my LOSSES in VVUS and CPQ this summer.) Tony D.