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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: Chandler H. Everett who wrote (7877)	1/18/1998 8:57:00 AM
From: bdog	Read Replies (1) \| Respond to of 12039

Thanks Chan, you are so right,I don't have a system as of yet to yank me out of a trade gone bad. I don't have one to get me in either! How long did it take you to develope yours and was is more simple then or now? I'm also having a hard time learning a paper loss IS a loss. Maybe some day I'll learn to play a dead cat bounce instead of being one <g>... bdog

To: Chandler H. Everett who wrote (7877)	1/18/1998 10:12:00 AM
From: Dick Brown	Respond to of 12039

Why are you afraid to write calls? I assume covered calls not naked..It is quite a conservative strategy. You write calls when you think the market is going down, as you know I'm sure.. The worst case is the call option gets exercised so try to write at a strike price that seems remote to be obtained before the option expires. Time erosion works on the writers side.. Adds a few percent..Don't do it if you decided to own the stock for a kids education and your time horizon is several years cause you will just have to cover the option or buy back the stock at a later date, probably both at higher prices, if the stock goes beyond the strike price.... Dick.