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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: Douglas Webb who wrote (7027)	2/27/1998 12:13:00 PM
From: David V. Lott	Read Replies (1) \| Respond to of 14162

Thanks to all for the imputs. I have been cc-ing for over a year now with good results if I stay in the 8-10% yield range. The volatility that comes with the higher yields made me extremely uncomfortable. I was unfortunately non-communicato with the world on a hunting trip for 10 days during the steep drop during Oct and Nov. Didn't even know anything was going on until I arrived back in town and found numerous messages from my broker. Didn't even have a chance to repair - 3 of my holdings were down 40%. The rest is history. Live and learn. I am steering toward more conservative approaches (as if cc-ing isn't conservative enough ) and back door exits if available. I started doing intensive work in Nov on several techniques. Though I still prefer covered calls I am starting to like the conservative BPS which coincidentally just recently a thread started on this site. I agree with you, Doug, on the investment exposure. Take IBM. Investing $100 to buy the stock yields maybe 2% without margin monthly. An out of the money BPS yields 25% with only $4 tied up and yielding interest as well. In my books 25% beats 2% any day of the week. Additionally I can spread my risks over a far greater number of stocks. Again thanks for the insights and hope to continue with our discussions Dave