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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: blankmind who wrote (7141)	3/22/1998 12:35:00 PM
From: margin_man	Respond to of 14162

You're correct except for (15-10+5). It should be (15-10+1)= 6. Unless VVUS jumps from 10 to 40 in one day, I would buy back my calls when VVUS is going to 16 or when the calls are in the money and have no or very little time value. I only do this if I think the stock is going to move big to the upside. Patriot

To: blankmind who wrote (7141)	3/23/1998 4:55:00 AM
From: RCVJr	Respond to of 14162

As Herm pointed out (believe me, he is the expert here) - this is a conservative approach and it will limit, as you pointed out, a large move to the up side. If you are confident of a company's chances of great earnings, buying calls as a side play can provide you a way to participate in that upside potential. With VVUS, I have done covered calls with my shares for April 10s as I feel there may be a sell-off (IMHO) on the Viagra news, with the assumption that it is approved. I should be able to buy back my covered calls go for a double dip as I think the drop will be temporary.