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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: rkf who wrote (6417)	1/14/1998 6:12:00 PM
From: Greg Higgins	Read Replies (1) \| Respond to of 14162

rfk writes: Greg, thanks for the answer. ... DELL is truly "rolling" right now. You could have ridden the $79 to $90+ wave 4 times since mid October. I've ridden it twice - so no complaints. Your strategy is interesting and is another good way to milk return. Yes, DELL is rolling, which is one reason it has such big premies. My personal DELL strategy is different. I bought Jan 2000 LEAP 60 CALLs (44 3/8) and sold the Feb 85 calls for 8 3/4. I do believe in rolling stocks, though I've never read Wade Cook. [I call it "Swimming the channel".] When I chart a stock, I use a 5 day moving average of highs offset by 3% as the upper channel marker and a 5 day moving average of lows offset by 3% as lower channel marker. I look to close calls, buy stock or buy calls when the price is near the bottom of the channel and I look to sell calls or sell stock when the price is near the top of the channel. Some stocks I look at never go near the channel walls. These I stay away from as they don't move enough to interest me.