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: Herm who wrote (7268)	4/13/1998 11:28:00 AM
From: Douglas Webb	Read Replies (2) \| Respond to of 14162

Some of you may have noticed that my options page often doesn't work very well, and often doesn't have anything other than the last price for each option. This is due to the quote source, CBOE. Yesterday I was going through SI's hot links page, and PBS Brokerage was mentioned. I went to their page, and found that I could use them as an alternative quote source again. (I was using them originally, but they changed their site and I couldn't get quotes from them.) I've updated my options page to let you choose which quote source to use. I'm not sure which I prefer, but it's nice to have both when one isn't working well. webbindustries.com Doug.

To: Herm who wrote (7268)	4/13/1998 12:58:00 PM
From: hal jordan	Read Replies (2) \| Respond to of 14162

Herm, You initially started this thread naming it "An Ongoing Real Case Study". Okay--how about potentially expending on that theme to try this out for interested readers. Maybe a monthly group exercise: securitytrader.com This link takes you to compounding tables of what is theoretically possible writing covered calls starting with a $10,000 base. How about giving it a group crack? If we are successful, the result would be over $1,000,000 at the end of three years (not counting taxes), given a 14% gain per period. Do you believe this is possible? If people think this can be attained, perhaps it is worth a try. This would expand your original theme into a specific goal for the group. A goal of becoming a millionaire in a few years based off CCing! Crackpot idea--maybe. But if not, we could try here, or start a new thread specifically for identifying monthly candidates and see what our "compounding periods" actually net us. I don't know if this exercise is possible, given that stock prices, and therefore CC prices vary on a daily, if not by the minute, basis. None of us are constantly on this medium real-time to take advantage of real-time updated information. But perhaps if we pick one day during the month to select our best picks to write CCs for this goal, it can be tried out. Does this make sense to you? What do you think? Hal

To: Herm who wrote (7268)	4/13/1998 1:26:00 PM
From: R. Gordon	Read Replies (1) \| Respond to of 14162

Herm, >>>you still would be eligible for damages if the class action is successful. As long as you have copies of the brokerage transactions. You don't have a dime to lose at this point. Yes, this is true - I got hurt badly with SIII - these law suits hurt the company and make mountains of money for the lawyers. The people who stole the money usually get a slap on the wrist and have to repay a portion of their loot --- and the stock holders usually get back a few cents on the dollar. These deals are almost always settled out of court and no one goes to jail. (Unlike the poor slob who steals a stereo out of someone's car for the third time and goes to jail for life.) Billions of dollars get stolen every year this way. Nearly every day new stocks are listed as having class action suits against them. Often stocks will go up for a few days or a week after such news and then begin to fall. If you recall, I expressed concerns back in mid December that this may have happened to VVUS. Sorry to see such a nice guy get mugged. Richard