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 (7292)	4/15/1998 12:57:00 PM
From: Ofelia Cuesta	Respond to of 14162

Herm, Another way in which the SecurityTrader site helped me was in learning about trading with the 13 and 26 day EMAs. Below is a chart of VVUS (rather small, hard to view). Following the rule of trading with the 13 and 26 day EMAs would have indicated exiting VVUS around end Oct. 97 or beginning Nov. 97. Although it is probable a CCer would still have incurred some losses during this turnaround period, still it would have prevented riding the stock all the way down to the $8 range where it is today. bigcharts.com Hope you can see the chart as it is small. The 13 day EMA (green) crosses downward the 26 day EMA (blue), late October '97 and has never been above the 26 day EMA since.

To: Herm who wrote (7292)	4/15/1998 1:50:00 PM
From: RayV	Read Replies (1) \| Respond to of 14162

Herm A lot of action in old friends TECD and JMED today! Ray

To: Herm who wrote (7292)	4/15/1998 2:01:00 PM
From: Braddoe	Read Replies (1) \| Respond to of 14162

Hi Herm and others on the thread! <<You can make a cool 40%-50% per year with the plain CC techniques.>> I have been investigating Covered Calls and reading this thread for a while and I am wondering if this kind of return is realistic over several years. Are there any people been doing CCs for years, and are they getting this kind of return (or less, or more)? I can understand if people do not want to reveal their exact ROI, but I think it is important to know what kind of numbers are realistic over the long haul, not just over a couple of lucky months. I have seen many web sites on covered calls and seen Wade Cook tell how you can be a millionaire in 3 years or less, but I am skeptical of that. I have just started reading a couple of Lawrence McMillan's books and what he says is less rosy, but more believable. Is there any way to protect downside risk so that many months or a years worth of profits aren't evaporated a stock that stumbles (or tumbles like VVUS)? Are covered calls really appropriate for the conservative investor? Thanks, sorry for all the questions I know you get many on this thread Brad

To: Herm who wrote (7292)	4/15/1998 9:34:00 PM
From: Roger Louis	Read Replies (3) \| Respond to of 14162

Hi Herm.. I picked up the security trader site on this thread a month or two ago. I was surprised to see you didn't know about it. I use the site as one source of leads. I just received my packet from Barrack Rodos & Bacine. I also feel it is buyer beware, but if I am able to recoup any of my losses I'll stand in line with the rest. BTW...Gerri says HI to you and Phyllis.