Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Tony D. who wrote (6532)	1/23/1998 11:52:00 AM
From: Douglas Webb	Respond to of 14162

I agree that a pullback in CREAF is likely after the earnings report. What I'm hoping will happen is that we'll get up to $22.5 Monday or Tuesday, so I can write some 22.5 calls against my $23.73 net cost shares and still have a profit if I get called. I suspect we'll pull back to $20 after that, and maybe even $17. (Hopefully no lower.) I haven't decided yet if I'm going to write against all my shares at $22.50. If the market looks good, we may get as high as $25, and I want to get at least a little of that. I would still write the 22.5's, but for the bigger premie. In fact, I might even write 20's, if I can get a bigger profit that way if I'm called at 20. The TLB chart for CREAF does change a lot for different settings, and yes, it's because of CREAF's volatility. I always use the high setting, with the medium setting giving strong confirmations. As Herm said, we're close to getting a white bar on the medium chart; that confirms the uptrend that's in place on the high chart. Doug.

To: Tony D. who wrote (6532)	1/23/1998 3:24:00 PM
From: Herm	Read Replies (2) \| Respond to of 14162

No Tony, I don't have anything to do with coveredcall.com. Nor do I derive any payments, personal gains, or profits from any one other than my personal stock investments. The owner(s) of Coveredcall.com are regular readers of this forum and other on S.I. web site. They provide a free service of value that parallels our investment objectives in covered calls writing. As you know, the higher % of the premies, the higher the potential risk associated with that stock option. Rate of return should never be the exclusive reason for selling CCs. You should like the stock and be willing to go long in most cases.